Consider the market for pork illustrated in the graph. Suppose initial demand (D') isQ= 290 - 20pand supply (S') isQ = 80 + 40pand that a $3.00 tax is charged to consumers, shifting the demand curve to DUsing the original and after-tax pork demand functions and the supply function, derive the initial equilibriumprice and quantity and the after-tax equilibrium price and quantity.ST(Enter all responses using real numbers rounded to two decimal places)e1P1ey..The equilibrium price is initially $ per kg.P2D2Q, Q,Q, Million kg of pork per yearD30tvMacBook Airesc80F2F4F5DIIF7F8F9@F1123$234&56.789QWERT.YP. $ per kg* 00

The equilibrium before tax is at Qd=Qs290-20p=80+40p60p=210p=3.5Q=290-20*3.5Q=220the equilibrium…

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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