Question

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=

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:

Please leave a comment in case of a query.

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