You have been recently employed as a consultant for a company that produces laptops in Ghana. Suppose the research department of the company have estimated the demand and supply curves of laptops and they are: 2Qd + 0.5P − 24 = 0 and 4Qs − 2P + 6 = 0 You are to use this information to a. Determine the equilibrium level of prices and quantity demand. b. Represent your answer graphically and determine the welfare of economic agents. c. Suppose the government imposes a tax of ¢4 on every laptop sold, determine the new equilibrium price and quantity. d. Represent the new supply curve, old supply curve and the demand curve on a graph showing all equilibria. e. Show how the economic agents share the tax. f. What is the amount of government tax revenue?
1.
You have been recently employed as a consultant for a company that produces laptops in
Ghana. Suppose the research department of the company have estimated the demand and
supply curves of laptops and they are:
2Qd + 0.5P − 24 = 0
and
4Qs − 2P + 6 = 0
You are to use this information to
a. Determine the equilibrium level of prices and quantity demand.
b. Represent your answer graphically and determine the welfare of economic agents.
c. Suppose the government imposes a tax of ¢4 on every laptop sold, determine the new
d. Represent the new supply curve, old supply curve and the demand curve on a graph
showing all equilibria.
e. Show how the economic agents share the tax.
f. What is the amount of government tax revenue?
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