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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 29
Use the information on Case 1 in Table to answer the following questions.
1. Suppose that the government confiscated two CDs per week as being ''not suitable for young ears.'' What would be the equilibrium price of the remaining CDs?
2. Suppose that the government imposed a $4-per-CD tax, resulting in a $4 difference between what consumers pay and what firms receive for each CD. How many CDs would be sold? What price would buyers pay?
TABLE Supply and Demand Equilibrium in the Market for CDs
1. Suppose that the government confiscated two CDs per week as being ''not suitable for young ears.'' What would be the equilibrium price of the remaining CDs?
2. Suppose that the government imposed a $4-per-CD tax, resulting in a $4 difference between what consumers pay and what firms receive for each CD. How many CDs would be sold? What price would buyers pay?
TABLE Supply and Demand Equilibrium in the Market for CDs
Explanation
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Verified
1) The price would rise to $7. Demand wo...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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