Qs=2p, Qd=12-pThe following is the quantity demanded and quantity supplied of in a market? (1)What is...

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Economics

Qs=2p, Qd=12-p
The following is the quantity demanded and quantity supplied ofin a market? (1)
What is the market equilibrium price and supply for the marketabove? (1)
If there was a tax of 6 dollars on firms how much will the firmsreceive from the buyers, how much will consumers pay for good, howmuch will the government make in revenue? (1)
What types of goods tend to be inelastic? Should the governmenttax these types of goods, Why or why not? (2)

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Answer The demand function is Qd12p and the supply function is Qs2p Equilibrium occurs when Qd Qs Thus equating Qd Qs we get 12 p 2p Or 3p 12 Or p 4 Therefore the market equilibrium price 4 The market equilibrium quantity 8 units If there was a tax of 6 dollars on firms then the new supply curve would be Qs 2p6 2p 12 So new equilibrium occurs when the See Answer

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