The are 10,000 identical individual buyers in the market for commodity X, each with a demand
Channel: Doubtnut
Date: 2020-05-03

The are 10,000 identical individual buyers in the market for commodity X, each with a demand fucntion given by Qdx=12-2Px and 1,000 indentical producers of commodity X, each with a supply function given by Qsx=20Px.  (i) Find the market demand function and the market supply function for commodity X.  (ii) Obtain the equilibrium price and equilibrium quantity.  (iii) Suppose the government decides to collect a tax of rupee 2 per unit sold from each of the 1,000 sellers of commodity X. What effect will this have on the equilibrium price and quantity of commodity X?