Suppose the demand and supply curves of salt are given by: `0ltplt15`
`q^(D)=1,000-p`
`q^(S)=700+2p`
(a) Find the equilibrium price and quantity.
(b) Now suppose that the price of an input used to produce salt has increased so that the new supply curve `q^(S)=400+2p.` How does the equilibrium price and quantity change?
(c) Suppose the goverment has imposed at tax of rupee 3 per unit on sale of salt. How does it affect the equilibrium price and quantity?

Suppose the demand and supply curves of a Commodity X is given by the following two equations simultaneously: Qd = 200 - p , Qs = 50 + 2p (i) Find the equilibrium price and equilibrium quantity. (ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation: Qs'=80+2p Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.