Qd = 12 - 2P
Qs = 2 + 3P
Find equilibriumium P&Q
Assume that a $1 tax is imposed on the seller. The new Qs is: Qs = 2+3(P- I )
Find the new P&Q.
What proportion of the tax is paid by the seller?
What proportion of the tax is paid by the buyer?
You are the marketing manager for XYZ Corp. You have this regression result for your product:
Q = 2000 - 3.S*P + 1 .2*1. Right now, your price is 10, and the average income of your customers is
$30,000.
compute income elasticity
Is your good a normal good or an inferior good?
You expect a recession. You estimate that your customer's average income will fall 5% due to this recession. Estimate the impact on your sales.