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Answered Same Day Oct 07, 2021

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Komalavalli answered on Oct 08 2021

134 Votes

a)
)
Demand: P = 1000 – Q
Supply: P = 3/5Q
At equili
ium
Demand equals supply
1000-Q = 3/5Q
8/5Q = 1000
Q = 375
Q = 375
Substituting Q = 1250 in P we get,
P = 3/5*625
P = 625
Equili
ium price is $625 and the quantity at point E is 375.
c)
Imposed tax increases cost for cellphone...

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