Suppose we have the following demand and supply equations D(p) = 200 – p and S(p) = 150 + p a. What is the equilibrium price and quantity? b. If a quantity tax of Ghc2 per unit is placed on the good, calculate the new equilibrium price and quantity c. If an ad valorem tax of 20% is placed on the good, what will be the effect on equilibrium price and quantity

Suppose we have the following demand and supply equations D(p) = 200 – p and S(p) = 150 + p a. What is the equilibrium price and quantity? b. If a quantity tax of Ghc2 per unit is placed on the good, calculate the new equilibrium price and quantity c. If an ad valorem tax of 20% is placed on the good, what will be the effect on equilibrium price and quantity

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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