Purchase Solution

new price, quantity and incidence of taxation on consumers

Not what you're looking for?

Ask Custom Question

Hello OTA's I am hoping someone can show me how to do this question. It is in my economics book, and I need to figure out how to get the answer. Can someone show me how to do this question.

Thank you.

In a market, demand is initially given by Q=100-20P, and supply by Qs=50+10P. Find the equilibrium price and quantity. Now, a $1.00 dollar lump sum tax is levied on suppliers. Find the new price, quantity and incidence of taxation on consumers. hide problem

Purchase this Solution

Solution Summary

Find the new price, quantity and incidence of taxation on consumers.

Solution Preview

In a market, demand is initially given by Q = 100 - 20P, and supply by Qs = 50 + 10P. Find the equilibrium price and quantity. Now, a $1.00 dollar lump sum tax is levied on ...

Purchase this Solution


Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.