The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are? The government decides to: a) Impose a 25% Tax on X? b) Impose a 5 Rs /unit Tax on Y? c) Give a 10% subsidy on good z?
The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are? The government decides to: a) Impose a 25% Tax on X? b) Impose a 5 Rs /unit Tax on Y? c) Give a 10% subsidy on good z?
Chapter4: Markets In Action
Section: Chapter Questions
Problem 6SQ
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The
Dx = 100-3Px+Py+3Pz
Dy = 80+Px-2Py-Pz
Dz = 120+3Px-Py-4Pz
Sx = -10+Px
Sy = -20+3Py
Sz = -30+2Pz
- The
equilibrium prices and quantities of all three goods are? - The government decides to:
- a) Impose a 25% Tax on X?
- b) Impose a 5 Rs /unit Tax on Y?
- c) Give a 10% subsidy on good z?
- Analyze the impact of each of these policies separately on equilibrium prices and quantities?
- Analyze the impact of each of these policies separately on equilibrium prices and quantities?
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