The demand and supply functions of a good are given by P= -5Qd + 80 P=...

Question

Question

The demand and supply functions of a good are given by

P= -5Qd + 80

P= 2Qs + 10

where P, Qd, and Qs denote price, quantity demanded and quantity supplied respectively.

Find the equilibrium price and quantity graphically and algebraically. Show all work.

If the government deducts, as tax, 15% of the market price of each good, determine the new equilibrium price and quantity. Show all work.

Answer 1

Answer #1

Answer 2

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