Question

PE to calculate the QE. Suppose the market for wine is given by the following Demand...

PE to calculate the QE.

Suppose the market for wine is given by the following Demand and Supply​ equations:

QD(per day)​ =2030-54 QS​ (per day)​ =32P​- 953

a. What is the equilibrium price and​ quantity?  

PE​=  

QE​ = ? units of wine

b. If the government imposes a tax of​$6 per​ unit, find the new equilibrium price ​(PTAXE​) and quantity ​(QTAXE​).

PTAXE=$    

QTAXE ​ =units of wine

c. What is the​ government's tax revenue per​ day?  

Tax Revenue​ =

d. How much of the​$6 tax​ per-unit do consumers​ pay?

Consumers pay=

e. How much of the ​$6 tax​ per-unit do producers​ pay?   

Producers pay=

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Homework Answers

Answer #1

Qd=2030-54p

Qs=32p-953

At equilibrium,Qd=Qs

2030-54P=32P-953

86P=2983

P=34.7

Q=156.2

When government imposes tax:

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