77 909
Assignments Done
Successfully Done
In August 2019

Answer to Question #19542 in Differential Equations for Ashley

Question #19542
1. Qd = kP−e(e > 0)
Qs = c(P − T0)
are the demand and supply curves for a commodity whose price is P.
T0 is a sales tax imposed by the government on sales of this commodity.
(a) Compute the price elasticity of demand and the price elasticity of supply of this commodity.
(b) Find an expression for ∂P/∂T0 where P is the equilibrium price in this market.
(c) Show that 0 < ∂P/∂T0 < 1.
(d) Total tax revenue collected by the government is R = T0Q. Find an expression for ∂R/∂T0.
Expert's answer

Not answered

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions