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The market demand and supply schedule for Commodity X is as follows: Qd= 2000 - 60P and Qs= 400 + 20P What is the Equilibrium Price (Rs) and quantity (units) demanded for X on the market? Use a diagram.                                                                  Assuming that the Total Cost incurred by a firm is Rs 1100, what is the profit made if it sells only 65 units.  Suppose the government imposes a tax of $ 8 per unit. With the help of a diagram, what will be the new equilibrium price, equilibrium quantity and show the effect on the consumer and on the producer. Justify your answer.                                                                                                                                      Demand for X falls by 25% as a result of an increase in price of 10%. Calculate the elasticity of demand for the product.

The market demand and supply schedule for Commodity X is as follows: Qd= 2000 - 60P and Qs= 400 + 20P What is the Equilibrium Price (Rs) and quantity (units) demanded for X on the market? Use a diagram.                                                                  Assuming that the Total Cost incurred by a firm is Rs 1100, what is the profit made if it sells only 65 units.  Suppose the government imposes a tax of $ 8 per unit. With the help of a diagram, what will be the new equilibrium price, equilibrium quantity and show the effect on the consumer and on the producer. Justify your answer.                                                                                                                                      Demand for X falls by 25% as a result of an increase in price of 10%. Calculate the elasticity of demand for the product.

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 23EQ: 23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes...
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  1. a) The market demand and supply schedule for Commodity X is as follows:

Qd= 2000 - 60P and Qs= 400 + 20P

  • What is the Equilibrium Price (Rs) and quantity (units) demanded for X on the market? Use a diagram.                                                                 
  • Assuming that the Total Cost incurred by a firm is Rs 1100, what is the profit made if it sells only 65 units. 
  • Suppose the government imposes a tax of $ 8 per unit.

With the help of a diagram, what will be the new equilibrium price, equilibrium quantity and show the effect on the consumer and on the producer. Justify your answer.                                                                                                                                     

  • Demand for X falls by 25% as a result of an increase in price of 10%. Calculate the elasticity of demand for the product.   
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What is the Equilibrium Price (Rs) and quantity (units) demanded for X on the market?

Use a diagram please

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