Question

Suppose the demand and supply curves of salt are given by

    Qd =1000 – p    Qs = 700 + 2p

Find the equilibrium price and quantity.

Now suppose that the price of an input used to produce salt has increased so that the new supply curve is    Qs = 400 + 2p

        How does the equilibrium price and quantity change? Does the change confirm to our expectations?

Suppose the government has imposed a tax of rupees 3 per unit of sale of salt. How does it affect the equilibrium price and quantity?      ​

Answer 1

Explanation:

Explanation:please please attach the photo of this question I can't understand like this but also I try once