# Calculating equilibrium price and quantity

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?

© BrainMass Inc. brainmass.com October 10, 2019, 1:58 am ad1c9bdddfhttps://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