Suppose the demand and supply curves of salt are given by: `0ltplt15`  `q^(D)=1,000-p`  `
Channel: Doubtnut
Date: 03/05/2020

Suppose the demand and supply curves of salt are given by: `0ltplt15`  `q^(D)=1,000-p`  `q^(S)=700+2p`  (a) Find the equilibrium price and quantity.  (b) Now suppose that the price of an input used to produce salt has increased so that the new supply curve `q^(S)=400+2p.` How does the equilibrium price and quantity change?  (c) Suppose the goverment has imposed at tax of rupee 3 per unit on sale of salt. How does it affect the equilibrium price and quantity?