Suppose the demand curve for a good is given by the equation P = 200 -...

 

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Suppose the demand curve for a good is given by the equation P = 200 - 1/2 Q and the supply curve is given by the equation P = 50+ 1/4 Q, where P represents the price of the good (measured in dollars per unit) and Q represents the quantity of the good (measured in units per week). (1) (11) (111) Find the equilibrium price and quantity for this market. Suppose the government imposes a sales tax of $9 per unit on this good. Find the new formula for the demand curve, the new equilibrium quantity, the post-tax price received by suppliers, and the post-tax price paid by demanders. What fraction of the economic burden of this tax is borne by demanders and what fraction is borne by suppliers? Suppose the demand curve for a good is given by the equation P = 200 - 1/2 Q and the supply curve is given by the equation P = 50+ 1/4 Q, where P represents the price of the good (measured in dollars per unit) and Q represents the quantity of the good (measured in units per week). (1) (11) (111) Find the equilibrium price and quantity for this market. Suppose the government imposes a sales tax of $9 per unit on this good. Find the new formula for the demand curve, the new equilibrium quantity, the post-tax price received by suppliers, and the post-tax price paid by demanders. What fraction of the economic burden of this tax is borne by demanders and what fraction is borne by suppliers?

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i To find the equilibrium price and quantity we need to set the demand and supply equations equal to each other and solve for Q Demand P 200 12Q Suppl... View the full answer