Question: We have the following two demand and supply functions Q_d=137-0.28P Qs=84+0.73P The government decided to impose a tax on each unit produced of the

$We have the following two demand and supply functions ( mathrm{Q} mathrm{d}=137-0.28 mathrm{P} ) ( mathrm{Q}^{mathrm{$

We have the following two demand and supply functions Q_d=137-0.28P Qs=84+0.73P The government decided to impose a tax on each unit produced of the commodity in the amount of 10 riyals Required: 1) What is the condition of equilibrium 2)Calculate the equilibrium price (P) before imposing tax 3)Calculate the equilibrium price after tax 4) Does the equilibrium price decrease after imposing the tax or does it rise compared to the equilibrium price before tax?

Step by Step Solution

★★★★★

3.47 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Market demand and market supply should be equal to each ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A DI has the following assets in its portfolio: $20 million in cash reserves with the Fed, $20 million in T-bills, and $35 million in mortgage loans. If it needs to dispose of its assets at short...

Deckle Printing Company currently leases its only copy machine for $ 1,200 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based....

Integral Printing Company currently leases its only copy machine for $ 1,200 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission...

Corporate Printing Company currently leases its only copy machine for $1,500 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission...

Solve all questions. A market demand and supply functions are as follows: Qd = 500 - P/4, and Qs = P/2 - 100. For parts 2-5, use ONE graph. 1. Determine the equilibrium price and quantity. 2. Graph...

Question: 1. Considering the following Industry Demand and Industry Supply Curves represented by the equations below: Supply: P = 495 + Q/3,310 Demand: P = 3,000 - Q/2,940 a) Use Excel to plot the...

Please helpFrom the text- please make one annotation per page Workbook please complete using the text 4 Files 4:01 PM Fri May '13 Insert Draw Layout Review View Unit 4Economic Indicators Name: HR:...

For the project, Students should read Chapter 19 and then write a short Chapter Summary, T he world is a giant shopping mall, and Americans are big spenders. For example, the U.S. population is less...

Demand and Supply Discussion Question: Applications-Ubereconomics Please read the article below and respond to the follow-up question: Why Uber Is an Economist's Dream Does 'surge pricing'...

Please help me to answer the following file ............................................................................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1...

Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or...

An experiment to test a new gasoline additive, Gasplus, was performed on three different cars: a sports car, a minivan, and a hybrid. Each car was tested with both Gasplus and regular gas on 10...

Find the absolute extrema of the function on the closed interval. f ( x ) = 7 - x , [ - 3 , 5 ] minimum ( x , y ) = ( ) maximum ( x , y ) = ( )

Use the compound interest formula to compute the total amount accumulated and the interest earned. $5000 for 3 years at 1.6% compounded monthly The total amount accumulated after 3 years is $ The...

Marcus receives an inheritance of $1,000. He decides to invest this money in a 20-year certificate of deposit (CD) that pays 3.0% interest compounded monthly. How much money will Marcus receive when...

To save for graduate school, a student invests $2320 semiannually in an ordinary annuity with 3% interest compounded semiannually. Determine the accumulated amount in the student's annuity after 30...

Elisa needs money to repair her home air conditioner, so she pawns her bicycle. The pawnbroker loans Elisa $270. Seventeen days later, Elisa gets her bicycle back by paying the pawnbroker $292.95....

Use the compound interest formula to compute the total amount accumulated and the interest earned. $9000 for 2 years at 4% compounded daily (use n=360) The total amount accumulated after 2 years is $...

En este caso todos los mercados o segmentos se ven afectados por el riesgo: Pregunta 1 Respuesta a. De liquidez b. No sistemtico c. De volatilidad d. Sistemtico

Would you please help me with the MC? ACCOUNTING 203 ON-LINE EXAM #2 (Chs. 17,18,19) Individual Portion 90 pts. 30 Multiple-Choice 3 pts. each (Please highlight your answers in yellow) 1. The costs...

In this question assume that p and q are atomic formulae. (a) Compare and contrast path formulae and state formulae in temporal logic. [4 marks] (b) Describe and contrast the meanings of F(G p) and...

MUST BE CORRECT ANSWERS A small software company has the following simplified cashflow, funded by shareholders' equity of 20,000 and a bank overdraft of 5000: Invoiced money received 2 months after...

Write 2 paragraphs about THE FUTURE OF INTERNATIONAL TRADE GOVERNANCE IN A PROTECTIONIST WORLD: THEORIZING WTO NEGOTIATING PERSPECTIVES article. No word count, page count, or formatting requirements....

Write an alternative definition that is tail-recursive (iterative) and makes use of accumulator variables. [10 marks] Explain why your alternative definition executes more efficiently. [3 marks] 1...

software projects failed. In the run-up to Y2K, most of the world's large companies claimed that fixing the Millennium Bug was a large project whose success was critical to their survival. One would...