Q2: suppose the demand and supply equation for eggs in market is: Qd= 100-2p; Qs= 10+40p i. Complete the given table ii. Graphically show the equilibrium iii. Find PED: for 0.5 to 1.5 and 2.5 to 1.0 iv. What happened to the eggs market if Government increases tax on poultry farm business and on the other hand consumer decreases the consumption of eggs because of reeducation in their income level (show and explain graphically) Price Qd Qs 0.5 1.5 2.5 1.0 2.0

Q2: suppose the demand and supply equation for eggs in market is: Qd= 100-2p; Qs= 10+40p i. Complete the given table ii. Graphically show the equilibrium iii. Find PED: for 0.5 to 1.5 and 2.5 to 1.0 iv. What happened to the eggs market if Government increases tax on poultry farm business and on the other hand consumer decreases the consumption of eggs because of reeducation in their income level (show and explain graphically) Price Qd Qs 0.5 1.5 2.5 1.0 2.0

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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suppose the demand and supply equation for eggs in market is: Qd= 100-2p; Qs= 10+40p Complete the given table Graphically show the equilibrium Find PED: for 0.5 to 1.5 and 2.5 to 1.0 What happened to the eggs market if Government increases tax on poultry farm business and on the other hand consumer decreases the consumption of eggs because of reeducation in their income level (show and explain graphically) Price 0.5 1.0 1.5 2.0 2.5 Qd Qs
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