Question

In Novi's market, the P intercept of the demand curve is at the point (0,15) and the P intercept of supply curve is at the point (0,6). The point of intersection of demand and supply curve (Equiblibrium) is (15,8)

a. Plot the demand and supply curves and indentify the equilibrium

price and quantity

b. Suppose that price is measured in S and the quantity of good in

tonnes per day and that a tax $4 per tonne is impossed.

c. After tax, The quantity moved became 10

Answer 1

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