Answered: find and interpret the market balance…

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter4: Demand And Demand: Applications And Extensions

Section: Chapter Questions

Problem 13CQ

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When the price is 10 TL for each pack of cookies, the supply is 250 thousand and the demand is 120 thousand boxes.
When the price is 9,5 TL for each pack of cookies, the supply is 200 thousand and the demand is 240 thousand boxes.
Since the price-demand and supply-demand equations are linear;

If a tax is applied at the rate of T=1.25 TL per product sold to the manufacturer, find and interpret the market balance point after tax.

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