6. Suppose that demand and supply of apples are described by the following equations: P = 100 - 3Q (demand) P = 20 + Q (supply) a) Calculate the equilibrium price and quantity. Illustrate. b) Suppose a $4 tax is placed on apples. What is the new equilibrium quantity? How much do consumers pay to get this quantity? How much do suppliers receive for selling this quantity? Show your results on a supply & demand diagram.

6. Suppose that demand and supply of apples are described by the following equations: P = 100 - 3Q (demand) P = 20 + Q (supply) a) Calculate the equilibrium price and quantity. Illustrate. b) Suppose a $4 tax is placed on apples. What is the new equilibrium quantity? How much do consumers pay to get this quantity? How much do suppliers receive for selling this quantity? Show your results on a supply & demand diagram.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 52P: Review Figure 3.4 again. Suppose the price of gasoline is 1.00. Will the quantity demanded he lower...

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