Assume that the demand and the supply in a market are represented by the following equations:

$Q _ { D } = 100 - 3 P$ $Q _ { s } = 2 P - 10$ (i)Compute the market equilibrium in this case.
(ii)If the government were to introduce an excise tax of $1 per unit of output, what would the new equilibrium be? What would the economic incidence of this tax be?

Question

Assume that the demand and the supply in a market are represented by the following equations:

Q _ { D } = 100 - 3 P

Q _ { s } = 2 P - 10

(i)Compute the market equilibrium in this case.
(ii)If the government were to introduce an excise tax of $1 per unit of output, what would the new equilibrium be? What would the economic incidence of this tax be?

Quizplus · Accepted Answer

The Answer of Assume that the demand and the supply in a market are represented by the following equations: $$Q _ { D } = 100 - 3 P$$ $$Q _ { s } = 2 P - 10$$ (i)Compute the market equilibrium in this case. (ii)If the government were to introduce an excise tax of $1 per unit of output, what would the new equilibrium be? What would the economic incidence of this tax be?

Assume That the Demand and the Supply in a Market QD=100−3PQ _ { D } = 100 - 3 PQD​=100−3P

Assume That the Demand and the Supply in a Market $Q _ { D } = 100 - 3 P$