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Suppose that a market is described by the following supply and demand equations: Qs = 4P; Qd = 100-P; a. Solve for the equilibrium price and the equilibrium quantity. b. Suppose that a tax of $5 is placed on buyers, so the new demand equation is Qd = 100 – (P + 5). Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? c. Calculate the deadweight loss from tax.

Suppose that a market is described by the following supply and demand equations: Qs = 4P; Qd = 100-P; a. Solve for the equilibrium price and the equilibrium quantity. b. Suppose that a tax of $5 is placed on buyers, so the new demand equation is Qd = 100 – (P + 5). Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? c. Calculate the deadweight loss from tax.

发布时间:2025-07-20 17:06:06
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