Suppose that the demand and supply functions for good x are given as follows: Q = 240 – 2P, + I – P, and Q =-30+ P, - 2t + s- 2f where P, denotes the price of good x. P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices. Suppose also that exogenous variables are given as follows: Income (I)=450, Price of the related product (P,) = 30, tax (t) =24, subsidy (s)=15 and factor prices (f)-36. %3D What are the equilibrium price and output values. respectively? 100, 240 130, 265 265, 130 240, 100

Suppose that the demand and supply functions for good x are given as follows: Q = 240 – 2P, + I – P, and Q =-30+ P, - 2t + s- 2f where P, denotes the price of good x. P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices. Suppose also that exogenous variables are given as follows: Income (I)=450, Price of the related product (P,) = 30, tax (t) =24, subsidy (s)=15 and factor prices (f)-36. %3D What are the equilibrium price and output values. respectively? 100, 240 130, 265 265, 130 240, 100

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 8E

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