Assignment is attached below

ECONOMICS
Table of Contents
Answer to Question 1    3
a.    3
b.    3
c.    5
Answer to Question 2    6
a.    6
b.    6
c.    6
Answer to Question 3    8
a.    8
b.    8
c.    9
References    10
Answer to Question 1
a.
To calculate the equilibrium price and the quantity demanded we get the two equations as described in the problem
P= 10-Q … (1)
P= Q-4… (2)
Putting the two equations together, we get
Q-4=10-Q
Adding 50Q to each side of the equation
Q-4+50Q=10-Q+50Q
51Q-4=10+49Q
51Q-49Q= 10+4
2Q=14
Q=7
Thus from the above equation we get Q=7
Putting the value of Q in equation 1, we get,
P=10-Q
P=10-7
P=3    
Thus, solving the equation, we get price as $3 and quantity demanded as 7 units.
b.
If the price of Tea is increased by $1, as the government imposes tax to reduce the consumption of Tea. The new price we get is 3+1 that is 4. Using equation 1, we get the new equilibrium quantity demanded by the market.
P=10-Q
Using the value of P determined at $4 we get
4 = 10-Q
Q = 10-4
Q = 6
The new equilibrium quantity demanded is 6 units which is equal to the change in price.
The above equation showed a change in the demand. Similarly, the supply is affected as the producers only get $2. The sellers are making less profit than they would have supplying tea if the police in the market were $2. The supply curve thus shifts to the left by the exact size of the tax applied.
The diagram shows a change in the supply curve and the equilibrium position that was reached before. These mean the new price of the Tea is 3.60 which means the burden if the Tax is shared in the ratio of 40: 60 by the supplier and the consumer (Heinonen et al. 2018). Hence, the tax burden on the consumer is 60% and the on supplier is at 40%.
The equilibrium market conduction form the above equations in a and b can be determined by the following diagram.
c.
Answer to Question 2
a.
The chart given in the questions demarcates various quantity demanded for bananas at various price levels. The change in quantity demand and supplied is based on various factors. To find the equilibrium price...