Consider the market for pork illustrated in the graph. Suppose demand (D') isQ = 225 - 25pand initial supply (S') isQ = 70 + 40pand that a $2.30 tax is charged to producers, shifting the supply curve to S.Using the pork demand function and the original and after-tax supply functions,derive the initial equilibrium price and the after-tax equilibrium price.(Enter all responses using real numbers rounded to two decimal places)s'The equilibrium price is initially $ per kg.P2P1D'Q2 Q1Q, Million kg of pork per yeartvMacBook AirP. $ per kg

Qd=225-25p Qs=70+40p Tax=$2.30 on producers Initial Equilibrium: Qd=Qs 225-25p=70+40p 155=65p…

Answered: Consider the market for pork…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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