Economic for Global Business Problem set 2 Yunkyung Lee T Price 22 * 20- 18 Supply 16 +- 14 12 4 10 8 Demand 100 200 300 400 500 600 700 800 900 1000 Quantity 16.Suppose that instead of a supply-demand diagram, you are given the following information: 2s = 100 + 3P Qd = 400 - 2P From this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that 2d = 400 - 2(P + T). If T = 15, solve for the new equilibrium price and quantity. (Note: P is the price received by sellers and P + 7 is the price paid by buyers.) Compare these answers for equilibrium price and quantity with your first answers. What does this show you? 8