The following shows the Supply and Demand functions as follows: 34 - 200p + 1800 = 0 and 3q + 100p - 1800 = 0. p is the price per unit in dollars and q is the number of units sold in a given period. a. At what price does equilibrium occur and draw? b. Find the equilibrium price at which a tax of 27 cents per unit is levied on the supplier!
Added by Gregory V.
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Let's use the demand function: 3q + 100p - 1800 = 0 3q + 100((2/3)q + 16/3) - 1800 = 0 Simplifying: q = 800 So the equilibrium price is: p = (2/3)q + 16/3 = (2/3)(800) + 16/3 = $538.67 To draw the equilibrium, we can plot the supply and demand functions on Show more…
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1. Supply and Demand Equation for certain product are 3q - 200p + 1800 = 0 and 3q + 100p - 1800 = 0 respectively, where p represents the price per unit in dollars and q represents the number of units sold per time period. a) Find the equilibrium price algebraically. b) Find the equilibrium price when a tax of 27 cents per unit is imposed on the supplier.
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