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Please written by computer source 2. The demands for gas and electricity, G and E respectively, are related to their prices, pg and p E
Please written by computer source
2. The demands for gas and electricity, G and E respectively, are related to their prices, pg and p E respectively, according to the following demand functions: G: l53j9c;+l'pE E = 20 + 0.5pG 2p}; The government imposes taxes on gas and electricity which changes the prices from pg : 4 and pE : 6 to pg : 5 and p3 : 7. (a) Calculate the quantities of G and E demanded, both before and after the taxes are imposed. (h) On a diagram with pg on the vertical axis and G on the horizontal axis, graph: (i) the demand curve for C, before the taxes are imposed (holding p E constant at its before-tax value); (ii) the demand curve for G, after the taxes are imposed; and (iii) the straight line through the before and after points on the graphStep by Step Solution
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