document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=919211>Question 919211</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you are given the following information <BR>\n" );
document.write( "Qs = 100+ 3p<BR>\n" );
document.write( "Qd= 400 – 2p<BR>\n" );
document.write( "Where Qs is the quantity supplied, Qd is the quantity demanded and P is the price.<BR>\n" );
document.write( "  1)  From the information compute equilibrium price and quantity.\r<BR>\n" );
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document.write( "  2) Now suppose that a tax is placed on buyers so that the Qd  =400-(2p+T)  where T is taxes. If T = 15, solve for the equilibrium new price and quantity. <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #557567 by </B><A HREF=/tutors/aboutme.mpl?userid=MathLover1><B>MathLover1(20850)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=MathLover1><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=MathLover1><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=557567\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> \r<BR>\n" );
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document.write( " Supply and demand are in equilibrium when <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qd=Qs ALIGN=MIDDLE  ALT=\"Qd=Qs\"   DISABLED_style= \"max-width:90%; height:auto;\" >. In your case:\r<BR>\n" );
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document.write( "1. to find the equilibrium price, solve the two equations simultaneously:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qs+=+100%2B+3p ALIGN=MIDDLE  ALT=\"Qs+=+100%2B+3p\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qd=+400+%96+2p ALIGN=MIDDLE  ALT=\"Qd=+400+%96+2p\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qd=Qs ALIGN=MIDDLE  ALT=\"Qd=Qs\"   DISABLED_style= \"max-width:90%; height:auto;\" >=>\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=100%2B+3p=+400+%96+2p ALIGN=MIDDLE  ALT=\"100%2B+3p=+400+%96+2p\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=3p%2B2p+=400-100 ALIGN=MIDDLE  ALT=\"3p%2B2p+=400-100\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=5p=+300 ALIGN=MIDDLE  ALT=\"5p=+300\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=p=+300%2F5 ALIGN=MIDDLE  ALT=\"p=+300%2F5\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=p=+60 ALIGN=MIDDLE  ALT=\"p=+60\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Equilibrium price is $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=60 ALIGN=MIDDLE  ALT=\"60\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "To find the equilibrium quantity, substitute equilibrium price into the equations:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qs+=+100%2B+3%2A60=100%2B180=280 ALIGN=MIDDLE  ALT=\"Qs+=+100%2B+3%2A60=100%2B180=280\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qd=+400+%96+2%2A60=400-120=280 ALIGN=MIDDLE  ALT=\"Qd=+400+%96+2%2A60=400-120=280\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "You'll know if your answer is correct if both equilibrium quantities for supply and demand are the same, which in this case is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=280 ALIGN=MIDDLE  ALT=\"280\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "2) Now suppose that a tax is placed on buyers so that the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qd++=400-%282p%2BT%29 ALIGN=MIDDLE  ALT=\"Qd++=400-%282p%2BT%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >  where T is taxes. If <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=T+=+15 ALIGN=MIDDLE  ALT=\"T+=+15\"   DISABLED_style= \"max-width:90%; height:auto;\" >, solve for the equilibrium new price and quantity. \r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=100%2B3P+=+400-2%28P%2B15%29 ALIGN=MIDDLE  ALT=\"100%2B3P+=+400-2%28P%2B15%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=100%2B3P+=+400-2P+-+30 ALIGN=MIDDLE  ALT=\"100%2B3P+=+400-2P+-+30\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=5P+=+270 ALIGN=MIDDLE  ALT=\"5P+=+270\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+=+54 ALIGN=MIDDLE  ALT=\"P+=+54\"   DISABLED_style= \"max-width:90%; height:auto;\" > (receive sellers)<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Pd+=+54%2B15+=+69 ALIGN=MIDDLE  ALT=\"Pd+=+54%2B15+=+69\"   DISABLED_style= \"max-width:90%; height:auto;\" > (pay buyers)<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Q+=+262 ALIGN=MIDDLE  ALT=\"Q+=+262\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Tax_+Revenue+=+262%2A15+=+3930+ ALIGN=MIDDLE  ALT=\"Tax_+Revenue+=+262%2A15+=+3930+\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "</TD></TR></TABLE>\n" );