Suppose the supply and demand equations for a manufacturer's product are and p = - 1 100 509 14, respectively, where q represents number of units and p represents price per unit in dollars. If a tax of $1.00 per unit is imposed on the manufacturer, determine the equilibrium quantity and the equilibrium price.

Suppose the supply and demand equations for a manufacturer's product are and p = - 1 100 509 14, respectively, where q represents number of units and p represents price per unit in dollars. If a tax of $1.00 per unit is imposed on the manufacturer, determine the equilibrium quantity and the equilibrium price.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 7E

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