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Demand And Supply | Online Homework Help

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May 5th, 2019

Suppose demand and supply are given by QXd = 14 – (1/2)PX and QXs = (1/4)PX – 1

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Instructions: Round your answers to the nearest whole number.
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a. Determine the equilibrium price and quantity. Show the equilibrium graphically.

Equilibrium price:

Equilibrium quantity:

Instruction: Use the tools provided to graph the inverse supply function ‘S’ and the inverse demand function ‘D’ from X = 0 to X = 6 (two points total for each) and indicate the equilibrium point.

b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity.
Equilibrium price:
Equilibrium quantity:
c. How much tax revenue does the government earn with the $12 tax?

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