Solve these demand and supply questions:The demand function for commodity x is q = 1, 000 − 10pd, where pd is the price paid by consumers. The supply function for x is q = 100+20ps, where ps is the price received by suppliers. For each unit sold, the government collects a tax equal to half of the price paid by consumers. Find the equilibrium prices and quantities. (Hint: in equilibrium, supply must equal demand).The demand for yak butter is given by 120 − 4pd and the supply is 2ps − 30, where pd is the price paid by demanders and ps is the price received by suppliers, measured in dollars per hundred pounds. Quantities demanded and supplied are measured in hundred-pound units. Draw the demand curve (with blue ink) and the supply curve (with red ink) for yak butter.Write down the equation that you would solve to find the equilibrium price. What is the equilibrium price of yak butter? What is the equilibrium quantity? Label the equilibrium price and quantity on the graph p1 and q1.

Market equilibrium refers to a scenario at which the demand for the goods or services is equal to…

Answered: Solve these demand and supply…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 2MC

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Solve these demand and supply questions:

The demand function for commodity x is q = 1, 000 − 10p_d, where p_d is the price paid by consumers. The supply function for x is q = 100+20p_s, where p_s is the price received by suppliers. For each unit sold, the government collects a tax equal to half of the price paid by consumers. Find the equilibrium prices and quantities. (Hint: in equilibrium, supply must equal demand).
The demand for yak butter is given by 120 − 4p_d and the supply is 2p_s − 30, where p_d is the price paid by demanders and p_s is the price received by suppliers, measured in dollars per hundred pounds. Quantities demanded and supplied are measured in hundred-pound units. Draw the demand curve (with blue ink) and the supply curve (with red ink) for yak butter.
Write down the equation that you would solve to find the equilibrium price. What is the equilibrium price of yak butter? What is the equilibrium quantity? Label the equilibrium price and quantity on the graph p₁ and q₁.

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