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Consider the following demand Q d = 140 - 3P and supply Q s = 20 + 20P for lunch at the Mountain View Golf
- Consider the following demand Qd = 140 - 3P and supply Qs = 20 + 20P for lunch at the Mountain View Golf and Country Club.
- Draw the demand and supply curves, and calculate the equilibrium price and quantity.
- The provincial government has imposed a sales tax of 12 percent on restaurant meals. Show how the above market is affected, and the new equilibrium price and quantity. (calculation is necessary).
- Explain and illustrate how the consumer's welfare is affected.Specifically show how the (1) consumer surplus, (2) total value, and (3) marginal value change.
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