In the market for a good the quantity supplied (${Q_S}$) and the quantity demanded (${Q_D}$) are given by ${Q_S}$ = P – 30 and ${Q_D}$ = 240 – 2P where P = price in dollars.
A change in the tax on the good makes ${Q_S}$ = P – 36.
How will the change affect equilibrium price?
1 )
It will fall by $2.
2 )
It will fall by $6.
It will rise by $2.
4 )
It will rise by $6.
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