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Unformatted text preview: • P = 100 – 30Q i for i = 1, …, 60 • where P is price, Q is quantity, and i is the representative individual. Also assume there are 60 identical firms. Each firm’s supply curve is given: • P = 10 + 60Q j for j = 1, …, 60 • where j is the representative firm. 5 Final Exam: Hint (a) Derive equations for the market demand and supply curves. Calculate market equilibrium price and quantity. Show these using a carefully labelled 6 7 8 9 10 11 Final Exam: Hint (b) Now suppose the Government imposes a consumption tax of $3 per unit. Calculate the new market equilibrium price and quantity. Show these in a new diagram. 12 13 14 15 16 17...
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 '07
 
 Microeconomics, Supply And Demand, representative

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