MT445 unit 2 assignment (Graded A+) - use as a guide only - 18654

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_KULogo.jpgUnit 2 Assignment

Student Name:

1.    Use the following equations for demand and supply to solve for market equilibrium price and quantity:

 

Demand:  Qd = 100 – 4P

Supply:  Qs = 10 + 6P

 

 

 

 

 

 

 

 

2.     Using the diagram below, answer the following questions:

 

 

a.    How much is the per-unit tax on cigarettes?

 

 

b.    What price do consumers pay after the tax?

 

 

c.    How much tax revenue is collected?

 

 

d.    What is the amount of deadweight loss?

 

 

 

Solution Description

Question 1

Solution:

Demand:  Qd = 100 – 4P _____ 1

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