Consider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question.  compute also the sales tax in order to answer those ff questions 7. How much is the change in the price for the consumer, when additional sales tax is 0.85 per unit? Use a number, 2 decimal values, no commas, no space, no signs. *   8. How much is the buying price when sales

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Chapter8: Application: The Cost Of Taxation
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Consider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P

Note: Determine the equilibrium point first to answer the following question. 

compute also the sales tax in order to answer those ff questions

7. How much is the change in the price for the consumer, when additional sales tax is 0.85 per unit? Use a number, 2 decimal values, no commas, no space, no signs. *

 

8. How much is the buying price when sales tax is imposed? Use a number, 2 decimal values, no commas, no space, no signs. *

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