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    Calculating equilibrium price and quantity

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    Let supply be given by P=5Q and demand by P=19-2Q.

    A) What would be the equilibrium quantity and equilibrium price?

    B) Suppose the Government imposes a $5 per unit tax on the seller, which equation would be affected and how?

    C) What would be the new equilibrium quantity and price?

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    https://brainmass.com/economics/demand-supply/analyzing-demand-supply-curves-example-problem-356847

    Solution Preview

    A) What would be the equilibrium quantity and equilibrium price?
    Supply curve is given by
    P=5Q or Q=P/5
    Demand curve is given by
    P=19-2Q
    2Q=19-P
    Q=9.5-0.5P
    In equilibrium Quantity demanded is equal to quantity ...

    Solution Summary

    Solution describes the steps to calculate equilibrium price and quantity in case of no tax and in case Government imposes a tax of $5 per unit.

    $2.19