00:02
To find the equilibrium quantity and price with no tax on apples, we need to set the quantity demanded equal to the quantity supplied.
00:12
So 326 minus 26 pd is equal to 61 plus 36 ps.
00:27
Rearranging, 26 pd plus 36 ps would be equal to 326 minus 61 which is 265.
00:40
Since there is no tax, the price paid by the buyer is equal to the price received by the seller, which is pd and ps respectively.
00:49
So pd is equal to ps and now we can solve the equation simultaneously.
00:56
We'll just substitute pd for ps and so that would be 62 pd is equal to 265.
01:04
Divide both sides by 62 and 265 divided by 62 is 4 point, we'll call it 4 .27.
01:21
Using this price, we can calculate the equilibrium quantity.
01:25
That would be 326 minus 26 times 4 .27.
01:34
So 326 minus 26 times 4 .27 is 214 .98.
01:45
So the equilibrium quantity is approximately 215 ,000 bushels of apples.
02:15
And the equilibrium price is about $4 .27 per bushel...