5. Suppose that instead of a supply-demand diagram, you are given the following Information:
Qs - 100 + 3P
Q - 400 - 2P
(1) (2points) compute equilibrium price and quantity. Now suppose that a tax is placed on
buyers so that
Page 19
lp - 400 - (2P+T)
(2) (2points) If T=15, solve for the new equilibrium price and quantity.
(3) (1point) Compare these answers for equilibrium price and quantity with your first
answers. What conclusion can you reach?
I

Acompany determined that the budgeted cost of producing a product is $30 per unit. on june 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in june, and the company desires to have 120,000 units on hand on june 30. the budgeted cost of goods sold for june would be

Acrosswalk_when there are no pavement markings.

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.