In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 28 - q and the supply function before taxation is p= 4 + 39, what tax per item will maximize the total revenue? /item
In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 28 - q and the supply function before taxation is p= 4 + 39, what tax per item will maximize the total revenue? /item
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section19.4: The Relationship Between Taxes And Elasticity
Problem 4ST
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![In this problem, p is the price per unit in dollars and q is the number of
units.
If the weekly demand function is p = 28 - q and the supply function before
taxation is p = 4 + 39, what tax per item will maximize the total revenue?
$
/item](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffbfa97a1-2b88-4b2f-b884-782902c862fc%2F3571b489-66fd-47f1-be80-ef37edf2444d%2Fk2zed2i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In this problem, p is the price per unit in dollars and q is the number of
units.
If the weekly demand function is p = 28 - q and the supply function before
taxation is p = 4 + 39, what tax per item will maximize the total revenue?
$
/item
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