Question: On the Cartesian plane, the demand for a product is traced (with the blue color) and relates the unit price (p) in dollars according to
On the Cartesian plane, the demand for a product is traced (with the blue color) and relates the unit price (p) in dollars according to the quantity (q) in units. The graph of the offer (with the color green) contains the point (0;80) and after applying a tax of 25 dollars it was drawn in the same plane, the offer (dotted line).
A) Calculate the equilibrium price after the tax.
B) If the state, instead of levying a tax, had subsidized the product at $55, how much does the balance amount change?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
