d a rise in tax on

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Unformatted text preview: ) A rise in tax on gasoline and a reduction in tax on cars. ............................................................. 3 The demand and supply schedules for wheat in a free market are as follows: Price per ton ($) 120 160 200 240 280 320 360 400 Tons demanded per week 725 700 675 650 600 550 500 425 Tons supplied per week 225 300 400 500 600 750 1000 1300 (a) Draw the demand and supply curves on the following diagram: 400 360 320 Price ( $ per ton) 6. 280 240 200 160 1 20 0 200 400 600 800 1000 1200 1400 1600 Quantity (tons per week) (a) What is the equilibrium price?...................................................................................................... (b) Suppose the government fixes a maximum price of $200 per tonne. What will be the effect? ....................................................................................................................................................... (c) Suppose that supply now increases by 150 tons at all prices. Enter the new figure...
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