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Supply and Demand Assignment

Author:
February 18th, 2020

Section 2: Supply and Demand

2. Consider the following supply and demand model:

P=a+bQp

P=c+dQs

a) True/False/Explain:d<b

b) Create a function that calculates the equilibrium quantity when there is a per-unit tax of $t. (i.e. Qlt)=P)

3. For question 2, determine the marginal effect of this tax on overall economic efficiency (i.e. how does total surplus change as you change t?).Get Finance homework help today

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