Suppose demand and supply are given by Qd = 60 - P and Qs = 1.0P - 20.
a. What are the equilibrium quantity and price in this market?
b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $52 is imposed in this market.
c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $35 is imposed in the market. Also, determine the full economic price paid by consumers.
Suppose demand and supply are given by QXd = 14 - (1/2)PX and QXs = (1/4)PX - 1
a. Determine the equilibrium price and quantity.
b. Suppose a $12 excise tax is implemented on goods. Conclude new equilibrium quantity and price?
c. How much tax revenue does the government earn with the $12 tax?