9. The following is part of a price schedule, showing the quantity discounts offered by a…
Image text transcribed for accessibility: C Question) The market for soda has supply and demand curves given by P = 0.02Qs P = 3-0.01Qd (a) Graph the demand and supply curves. (b) What is the equilibrium price and quantity for sodas? (c) How many units of soda will be traded if the government impose $2.50? What about if the government imposes a price ceiling of $0.80? (B Question) Returning to question 2, suppose the government put a tax on soda of $0.50 per can to be paid by consumers. Graph the before and after tax supply and demand curves. What is the new equilibrium price and quantity?
August 8, 2017Leadership
August 8, 20179. The following is part of a price schedule, showing the quantity discounts offered by a printing shop. Does something peculiar happen as the size of your order approaches the upper limit in a given price range? Explain in terms of Marginal Revenue to the printing shop. Can you think of a more sensible way for the printing shop to offer quantity discounts?
