Question

Consider the two relationships between quantity (Q) and price (P) below:
P = 100 - 4Q
P = 10 + 2Q

Answer 1

a.) Which represents a demand relationship and why ? ...supply and why?


b.) For the demand equation, determine the domain and range in the context of the application..


c.) Solve the system for the equilibrium values of price and quantity. Report both values below.


d.) Sketch both relationships on a diagram that you need not turn in, but do carefully describe what it looks like below.


e.) Suppose a supplier-paid tax of $6 per unit is levied in this market. Determine the new quantity exchanged, the price buyers pay (buyer’s price) and the revenue per unit sellers receive after tax (seller’s price). Carefully explain what share of the tax is paid by the buyer and what share is paid by the seller and why. How would you illustrate this on your graph?

Answer 2

@jim_thompson5910 please help.

Answer 3

how far did you get?