Welfare economics- determining externalities by ClassOf1

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                 [WELFARE ECONOMICS- DETERMINING
CLASSOF1
                 EXTERNALITIES]


  Document Description:
  Given the demand and supply functions, calculate the equilibrium price and
  quantity, determine the third party effect and corrective taxes.
                Sub: Economics



              Question:
              The supply of X can be described as Qs = 30P whereas the demand for X is Qd = 2000-10P; where
              Qs is the quantity supplied, Qd is the quantity demanded and P is the price. As such, find the a)
              equilibrium price P, b) the quantity of X that will be produced if third parties are ignored, and c)
              what is the socially efficient output of X if each unit of X
								
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