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Mr. Gregory White, Master's Degree
Category: Multiple Problems
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Experience:  M.A., M.S. Education / Educational Administration
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# 1. Explain what would happen to equilibrium price and quantity

1. Explain what would happen to equilibrium price and quantity

Customer Question

1. Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well):

a. The price of Coke decreases.

b. Average household income falls from \$50,000 to \$43,000

c. There are improvements in soft-drink bottling technology.

d. The price of sugar increases and the Pepsi launches an extremely successful advertising campaign.

2. Use the following equations for demand and supply to solve for market equilibrium price and quantity:

Demand: Qd = 100 – 4P
Supply: Qs = 10 + 6P

3. Using the diagram below, answer the following questions:

a. How much is the per-unit tax on cigarettes?

b. What price do consumers pay after the tax?

c. How much tax revenue is collected?

d. What is the amount of deadweight loss?
Submitted: 108 days and 22 hours ago.
Category: Multiple Problems Status: CLOSED

Posted by TeacherGreg 108 days and 22 hours ago.
Response From Expert

Thanks for requesting me again for your work...

I am starting on 1 and 2 and will have them in a short bit...

I do not see a diagram for question 3 however (can you send it?) (maybe do a screenshot and send it to me using mediafire.com)?

108 days and 21 hours ago.

Attachment: 2012-02-10_002958_shreen_shot.docx

Here is the graph.

Posted by TeacherGreg 108 days and 21 hours ago.
Response From Expert

Thanks... have to you in a bit..

108 days and 21 hours ago.

Ok thank you!

Here is the file - let me know if you have any questions...

http://www.mediafire.com/?so9k1heee3l1l49

All the best. Be sure to hit ACCEPT and feel free to request me anytime by asking for "TeacherGreg" at the front of your post.

Expert: TeacherGreg
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Hello, thanks so much for the request.

Are you asking the same question as the one that was answered here regarding the Pepsi and the cost of cigarettes... if so, here is the file.

All the best in your studies. Feel free to request me again anytime.

:-)

Customer: replied 4 years ago.
this is the same question yes, but I cannot open the file?

Try copying and pasting this one then - using box.com instead.

:-)

https://www.box.com/s/d9b0d299f1622b207b56