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Math Help - Economic question

  1. #1
    abc
    abc is offline
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    Economic question

    The demand and supply functions of a good are given by:

    P= - 1/4Qd+6.75

    P = 1/2Qs + 2

    I have to find the quilibrium quantity of the government imposese a fixed tax of 2 on each good. I know that the tax affects the supply side which is Qs.

    firstly i have to get the Qs andQd one the left side on its own.

    So i got for the first step:

    1/4 Qd = - p + 48

    1/2 Qs = p - 2

    But i don't know how to move the 1/2 and 1/4 to the other side.
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  2. #2
    MHF Contributor
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    Multiplication?

    4(1/4 Qd) = 4(- p + 48)

    2(1/2 Qs) = 2(p - 2)

    Let's see what you get.
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