demand function for product, Economics, Microeconomics

Assignment Help:

2. 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).

Related Discussions:- demand function for product, Economics

What is expenditure function, What is Expenditure Function? The Expendi...

What is Expenditure Function? The Expenditure Function: When preferences satisfy the local nonsatiation assumption, in that case v(p, m) will be strictly increasing into m.

Laws of economics, Do the laws of economics still work today? use the case ...

Do the laws of economics still work today? use the case discussed in class to answer this question or any other examples) (ii) Provide examples of three factors that can shift the

Forms of globalization, Globalization: A generalized historical process by ...

Globalization: A generalized historical process by which more economic activity occurs across national borders. Forms of globalization include international trade (imports and expo

Supply and demand, Explain the meaning of the statment "coffee and tea are ...

Explain the meaning of the statment "coffee and tea are close substitutes".

Purchasing power parity, Purchasing power parity: When PPP holds, the ...

Purchasing power parity: When PPP holds, the domestic currency has the same purchasing power at home and in any other country. PPP also implies that a foreign currency will de

Economies of scope in the trucking industry, Economies of Scope in the Truc...

Economies of Scope in the Trucking Industry * Questions: - Economies of Scope - Are large-scale, direct hauls cheaper and more profitable than individual hauls by small t

Budget Deficits and Surplus, In year one, suppose the federal government ha...

In year one, suppose the federal government has no national debt and spends $100 billion, while raising only $50 billion in taxes. The U.S. Treasury will issue $ billion of governm

Level of aggregate demand in economy, Q. Level of aggregate demand in econo...

Q. Level of aggregate demand in economy? Demand-pull inflation takes place when there is an increase in level of aggregate demand in economy. Aggregate demand comprises five co

What is opportunity cost, What is opportunity cost? Answer: Opportun...

What is opportunity cost? Answer: Opportunity cost is a term used in economics, to mean the cost of something in terms of an opportunity foregone (and the advantages that co

2nd year chapter 3, why s-block elements are powerful reducing agent?

why s-block elements are powerful reducing agent?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages