demand and supply functions

• Jul 20th 2010, 05:12 AM
arslan
demand and supply functions
1. The demand and supply functions of a good are given by

P=-2Q_d+40
P=3Q_s+10

a. Find the equilibrium price and quantity.

b. The government imposes a tax of t per unit sold. Show that the equilibrium quantity is given by

Q= 6 - 0.2t

and find a similar expression for the equilibrium price.
c. If the equilibrium quantity is known to be 4, calculate the value of t.
How much tax revenue is raised by the government?
• Jul 20th 2010, 05:19 AM
SpringFan25
we are not here to do your assignment for you. exactly where are you stuck?
• Jul 20th 2010, 05:21 AM
TKHunny
You simply MUST be able to do the first one or you cannot survive this course.

Get rid of the subscripts and solve for Q.

If you REALLY cannot do it, please back up and take an algebra class.
• Jul 20th 2010, 09:55 AM
arslan
sorry for not elabarating i understand that:

-2Q + 40 = 3Q + 10
30 = 5Q
Q = 6

-2(6) +40 = 28
26 = P

but am stuck from Qb onwards