Assume the supply and demand functions for your Math textbook are: p = -3*Qd + 48 p=(1/2)*Qs + 23 a) Determine the equilibrium price and quantity of your math textbook in the UAE market b) Assume a fixed tax of 4 dirham is imposed in the UAE textbook market, determine the equilibrium price and quantity of textbook traded after tax c) Comparing your results in Question (a) and Question (b), describe the impact of the tax o UAE textbook market d) As a student, would you recommend such tax ? why or why not ?
Assume the supply and demand functions for your Math textbook are: p = -3*Qd + 48 p=(1/2)*Qs + 23 a) Determine the equilibrium price and quantity of your math textbook in the UAE market b) Assume a fixed tax of 4 dirham is imposed in the UAE textbook market, determine the equilibrium price and quantity of textbook traded after tax c) Comparing your results in Question (a) and Question (b), describe the impact of the tax o UAE textbook market d) As a student, would you recommend such tax ? why or why not ?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...
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