ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The demand and supply functions for three (03) goods are given as follows:

Dx = 100-3Px+Py+3Pz

Dy = 80+Px-2Py-Pz

Dz = 120+3Px-Py-4Pz

Sx = -10+Px

Sy = -20+3Py

Sz = -30+2Pz

The equilibrium prices and quantities of all three goods are:

Px= 78.72  Qx= 68.72

Py= 23.66  Qy= 50.98

Pz= 60.42  Qz= 90.84

The government decides to:

 impose a 5 Rs/unit Tax on Y

 give a 10% subsidy on good Z.

When the above policies are jointly implemented. Analyse the impact on equilibrium prices and quantities. 

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