A group of retailers will buy 108 televisions from a wholesaler if the price is

Question

A group of retailers will buy 108 televisions from a wholesaler if the price is $450 and 148 if the price is $400. The wholesaler is willing to supply 72 if the price is $400 and if the price is $490. Assuming the resulting supply and demand functions are linear, find the equilibrium point for the market. Suppose that in a certain market the demand function for a product is given by 10 rho + q = 2300 and the supply function is given by 40 rho - q = 580. If the government levels a tax of $3 per than on the supplier, who passes the tax on to the consumer as a price increase, find the equilibrium price and quantity after the tax is levied. (q, p) = () Suppose that in a certain market the demand function for a product is given by 10 rho q = 2300 and the supply function is given by 40 rho - q = 580. If the government levies a tax of $3 per item on the supplier, who passes the tax on to the consumer as a price increase, find the equilibrium price and quantity after the tax is levied. (q, p) = ()

Explanation / Answer

1) The image is cut from right the value of number of TVs at $490 is missing.Please update

2) Demand : 10p +q = 2300

Supply : 40p - q = 580

If 3$ price increase is levied.So the price for consumers becomes $(p +3) and for supplier it still remains $p.

So, Demand : 10( p+3) +q = 2300

10p +q = 2270 ----(1)

Supply : 40p - q = 580 ----(2)

Solve the tewo equations to get (p, q)

add (1) and (2) : 50p = 2850

p = 57 ; q =2270 - 10*57 = 1700

( p, q) = ( 57 , 1700)

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