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Managerial Economics · End Term · 28 Apr 2024 · January 2024 term · Set QDB3

Question 25: The equilibrium quantity and price before incidence of t…

Question 25

+1 markOne correct option

The market demand curve for pizzas is P=300-Q and the market supply curve is P=60+2Q. A tax of t=15 INR is imposed on one unit of pizza sold. Answer the given subquestions.

The equilibrium quantity and price before incidence of tax are

  1. A

    P*=80 INR, Q*=220 units

  2. B

    P*=220 INR, Q*=80 units

  3. C

    P*=180 INR, Q*=60 units

  4. D

    P*=60 INR, Q*=180 units

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Correct answer

  • B

    P*=220 INR, Q*=80 units

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Question 25 of 41 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 28 Apr 2024, in the January 2024 term (IIT M DEGREE AN EXAM QDB3 28 Apr 2024). It carries 1 mark.

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