Compute numerically the equilibrium quantity, economics, Microeconomics

You are examining the effects of a specific tax of 10 cents imposed on the sales of a product that we shall call XYZ. To carry out your analysis, assume that the market is a perfectly competitive one. You are provided with the following data:

(1) Economists have estimated the demand function for product XYZ to be:

QD = 20 – 0.50 P

Where P is the price of the product (in cents) and QD is the quantity demanded (in thousands).

(2) The supply curve for the product XYZ has been estimated to be:

QS = 0.50 P

Where QS is the quantity supplied of XYZ (in thousands).

Please answer the following:

(1) Compute numerically the equilibrium quantity sold of XYZ and the equilibrium price before the tax.
Posted Date: 2/7/2012 2:25:05 AM | Location : United States







Related Discussions:- Compute numerically the equilibrium quantity, economics, Assignment Help, Ask Question on Compute numerically the equilibrium quantity, economics, Get Answer, Expert's Help, Compute numerically the equilibrium quantity, economics Discussions

Write discussion on Compute numerically the equilibrium quantity, economics
Your posts are moderated
Related Questions
why d block elements are called inner transition elements?

Vulnerability in international relations: Dominance, dependence and vulnerability in international relations.A greater volume of Ghana’s exports comes from primary commodities

once vaccinated,a person cannot catch a cold or give a cold to someone else. As a result,the marginal social benefit resulting from consumption of the vaccine.

What is the explanation for SAC to be tangent to LAC?(In other words, why must both be tangent to each other)?

true or false ,It is not possible for the compensated own price elasticity to equal the uncompensated own price elasticity.uestion #Minimum 100 words accepted#

Q. Explain about Natural Monopoly? Natural Monopoly: In some industries, economies of scale are so strong that it makes most economic sense for there to be just one supplier. T

NEER Vs REER: In a situation where there are multiple trade partners, the effect of cross-currency movements are judged by nominal effective exchange rate (NEER) and real effe


Assume that you have a client that is a paper manufacturer and they have expressed concern that the government will pass a new regulation banning the use of chlorine based technolo

Select the production possibilities curve for an economy with 42 units of labor