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. the demand and supply functions P d =100 - 0.5Q d P s =10 + 0.5Q d a) calculate the equilibrium price and the
. the demand and supply functions
Pd=100 - 0.5Qd
Ps=10 + 0.5Qd
a) calculate the equilibrium price and the quantity algebraically and graphically. comment on the solution
b) assume the Government imposes a tax of K6 per unit sold
i. write down the equation of the supply function adjusted for tax
ii. find the new equilibrium price and quantity algebraically.
outline the distribution of tax, that is calculate the tax paid by consumer and producer
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