1. Linear Function
Week 2- 3

2. Objectives:

3. Graphical solution

5. Test Your Self

7. Substitution

10. Tax

11. Subsidy
A per unit subsidy s is imposed by the government in a competitive market with the demand function P= 15-Q and supply function P= ,5 Q and s = RP. 1,5 per unit
Find the value of P and Q before and after subsidy

12. Find the value of P and Q before and after Tax
Exercise 1
A per unit tax t is imposed by the government in a competitive market with the demand function P= 15-Q and supply function P= ,5 Q and t = RP. 3 per unit
Find the value of P and Q before and after Tax 2