question archive Consider the demand equation: P=10-Q and supply equation: P=Q
Consider the demand equation: P=10-Q and supply equation: P=Q
Subject:MarketingPrice:2.88 Bought3
Consider the demand equation: P=10-Q and supply equation: P=Q.
a. Calculate the equilibrium price and quantity.
b. Calculate the consumer surplus, producer surplus, and total surplus at equilibrium.
c. Suppose the government imposes a tax of $2 for each unit bought. Derive the new equilibrium price that consumers pay, the price that firms receive, and quantity.
d. Calculate the deadweight loss of this tax.
e. In a diagram, show the equilibrium in part a and the equilibrium in part c; and the areas that you computed in part b and d.
