There are two questions to this problem set please answer both:

1.)

Consider an industry with market demand Q - 550 - 20 p and market supply Q - 100 + 10 p. Determine the equilibrium price and quantity. Suppose the government imposes a tax of $6 per unit to be paid by the seller. What is the impact on equilibrium price and quantity? () p=15 & Q-250 before tax; p=11 & Q-330 after tax () p-15 & Q-250 before tax; p=17 & Q-210 after tax () p=15 & Q-250 before tax; p-21 & Q=130 after tax p=15 & Q-250 before tax; p=17 & Q=330 after taxQuestion 10 All firms in a competitive market have identical cost structures, each defined by the cost function C(q) = 10+ 8q + 5q 2, where q defines the output of an individual firm. Suppose there 20 identical firms in this market. Further, assume the market faces an aggregate demand function Q = 152 - 4p. What is the equilibrium price and quantity in this market? Q=200; p=8 Q=800; p=8 Q=40; p=28 Q=20; p=10