The supply of an antibiotic is Q = 30 P 200. The demand for it

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The supply of an antibiotic is Q = 30 × P − 200. The demand for it is Q = 8,800 − 20 × P.

a. What is the market equilibrium price and quantity?

b. Use of the antibiotic creates $20 in external costs due to water pollution. Would the market outcome be different if a $20 tax were levied on producers instead?

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Economics For Healthcare Managers

ISBN: 9781640550483

4th Edition

Authors: Robert Lee

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Question Posted: Nov 05, 2023 03:46 AM

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The supply of an antibiotic is Q = 30 P 200. The demand for it

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a Market equilibrium price and quantity The market equilibrium price is where the supply and demand ...View the full answer

Economics For Healthcare Managers

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