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3. Demand and supply for a good are given by the following two equations: Demand: q = a – p Supply: q = 30 + (1+7) p where q and p denote the quantity and price, respectively. The parameter a is the maximum price consumers are willing to pay, also known as the choke price, while 7 represents the tax rate imposed on suppliers. (a) Solve for the equilibrium price and quantity in terms of the parameters a and r. (b) Find the equilibrium price and quantity when 7 = 10% and a = 50.

3. Demand and supply for a good are given by the following two equations: Demand: q = a – p Supply: q = 30 + (1+7) p where q and p denote the quantity and price, respectively. The parameter a is the maximum price consumers are willing to pay, also known as the choke price, while 7 represents the tax rate imposed on suppliers. (a) Solve for the equilibrium price and quantity in terms of the parameters a and r. (b) Find the equilibrium price and quantity when 7 = 10% and a = 50.

College Algebra
College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter6: Systems Of Equations And Inequalities
Section6.2: Two-variable Linear Systems
Problem 9ECP
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Have solved equilibrium price as 9.52, need equilibrium quantity

3. Demand and supply for a good are given by the following two equations: Demand: q = a – p Supply: q = 30 + (1+7) p where q and p denote the quantity and price, respectively. The parameter a is the maximum price consumers are willing to pay, also known as the choke price, while 7 represents the tax rate imposed on suppliers. (a) Solve for the equilibrium price and quantity in terms of the parameters a and T. (b) Find the equilibrium price and quantity when T = 10% and a = 50.
Transcribed Image Text:3. Demand and supply for a good are given by the following two equations: Demand: q = a – p Supply: q = 30 + (1+7) p where q and p denote the quantity and price, respectively. The parameter a is the maximum price consumers are willing to pay, also known as the choke price, while 7 represents the tax rate imposed on suppliers. (a) Solve for the equilibrium price and quantity in terms of the parameters a and T. (b) Find the equilibrium price and quantity when T = 10% and a = 50.
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