The demand and supply for bicycles is given by: Q = 1000 - 10P and supply is: Q³ = 2P - 20 6. Suppose the government imposes a 20% sales tax. What is the new equilibrium Price and equilibrium Quantity? a. Q*=85; P*=150 b. Q=150; P*=85 c. Q*=125.71; P*=87.43 d. Q*=87.43; P=125.71 e. None of the above

The demand and supply for bicycles is given by: Q = 1000 - 10P and supply is: Q³ = 2P - 20 6. Suppose the government imposes a 20% sales tax. What is the new equilibrium Price and equilibrium Quantity? a. Q=85; P=150 b. Q=150; P=85 c. Q=125.71; P=87.43 d. Q=87.43; P=125.71 e. None of the above

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 21QP

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