2. The demand and supply functions of a gcod are given by P = -Qd + 125, 2P =3Qs + 30. Determine the equilibrium price and quantity. Determine ako the effect onthe market equilibrium if the govemment decides to impose a fixed tax of GHC5 on eachgood Who pays the tax? (p = 81, q = 44, then p = 83, q = 42)3. If fixed costs are 18, variable costs per unit are 4, and the demand function is P = 24 -2Q. Obtain an expression for n in terms of Q and hence sketch a graph of n against Q.a) For what values of Q does the firm break even? (q = 1 or 9)b) What is the maximum profi? (n = 32 at q = 5)4. Given the supply and demand functionsP = Q? + 12Q, + 32,P = -Qå - 4Qa + 200,Calculate the equilibrium price and quantiy. (p = 140, q = 6)

As you have not mentioned the exact question to answer as per our policy I am answering second…

2. The demand and supply functions of a gcod are given by P = -Qd + 125, 2P = 3Qs + 30. Determine the equilibrium price and quantity. Determine ako the effect on the market equilibrium if the govemment decides to impose a fixed tax of GHc5 on each good Who pays the tax? (p = 81, q = 44, then p = 83, q = 42)

2. The demand and supply functions of a gcod are given by P = -Qd + 125, 2P = 3Qs + 30. Determine the equilibrium price and quantity. Determine ako the effect on the market equilibrium if the govemment decides to impose a fixed tax of GHc5 on each good Who pays the tax? (p = 81, q = 44, then p = 83, q = 42)

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter17: Taxation And Resource Allocation

Section: Chapter Questions

Problem 4TY

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Question

2. The demand and supply functions of a gcod are given by P = -Qd + 125, 2P =
3Qs + 30. Determine the equilibrium price and quantity. Determine ako the effect on
the market equilibrium if the govemment decides to impose a fixed tax of GHC5 on each
good Who pays the tax? (p = 81, q = 44, then p = 83, q = 42)
3. If fixed costs are 18, variable costs per unit are 4, and the demand function is P = 24 -
2Q. Obtain an expression for n in terms of Q and hence sketch a graph of n against Q.
a) For what values of Q does the firm break even? (q = 1 or 9)
b) What is the maximum profi? (n = 32 at q = 5)
4. Given the supply and demand functions
P = Q? + 12Q, + 32,
P = -Qå - 4Qa + 200,
Calculate the equilibrium price and quantiy. (p = 140, q = 6)

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