Suppose that the demand function is given by xp-n and the, Ask an Expert

Economics

Suppose that the demand function is given by x=P^-n, and the supply function by y= p^e. Find the equilibrium price. Determine the effect on the equilibrium price of the introduction of a tax t=0.1 if n= e=0.5. Finally, describe how the incidence of the tax is divided between the consumers and producers.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9294809

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