Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-Tax incidence explains how taxes are shared between producers and consumers.

Question

Quizplus · Accepted Answer

The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2PS1U1B1xS1U1B0. If P = $8, I = 200, and PS1U1B1xS1U1B0 = $10, then Q = 20 - 4(8) + 0.2(200) - 2(10) = 12. Therefore, the demand for noodles is 12 units.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation