Assume you are working for a tractor manufacturer. Your boss wants you to use the previous data to draw the supply curve and demand curve of the market and find that how many tractors she needs to produce at equilibrium and at what price?

b) The government just issued a new 1000-dollar tax on tractors which is going to be paid by the customers, beginning next year. For the next year, how many cars do you recommend to your boss to produce and at what price? Also, one of the shareholders wants to know how much the company will be worse off next year (change in producer surplus)?

 

Answer rating: 100% (QA)

To draw the supply and demand curves for the tractor market we need to analyze the data provided in ... View the full answer