Suppose that demand for good X is given by:QD = 20 ?P, while supply is given by: QS = 2P?4.a) Solve

/in /by

Suppose that demand for good X is given by:QD = 20 ?P, while supply is given by: QS = 2P?4.a) Solve for the equilibrium price (P*) and quantity (Q*)b) Suppose the government sets a price ceiling of $6. What is the shortage that resultsfrom this price ceiling?c) Now suppose that, instead of a price ceiling, the government charges an excise tax of $3per unit. Solve for the new equilibrium price and quantity after this tax is imposed, and the amount of revenue raised by the government.