Question: For the product in Problem 31, if a $22 tax is placed on production of the item, then the supplier passes this tax on by
For the product in Problem 31, if a $22 tax is placed on production of the item, then the supplier passes this tax on by adding $22 to his selling price. Find the new equilibrium point for this product when the tax is passed on. (The new supply function is given by p = 1/2q + 27.)
In problem 31,
The supply function for a product is 2p - q - 10 = 0, while the demand function for the same product is (p + 10)(q + 30) = 7200. Find the market equilibrium point?
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