The inverse demand function for apples in a country Dictatorestan is defined by the equation p = 214 - 5 q, where q is the number of units sold. The inverse supply function is defined by p = 7+ 4q. Suppose that the government of Dictatorestan is interested in maximizing its tax revenue. Find the quantity tax rate it should impose on apples.
The inverse demand function for apples in a country Dictatorestan is defined by the equation p = 214 - 5 q, where q is the number of units sold. The inverse supply function is defined by p = 7+ 4q. Suppose that the government of Dictatorestan is interested in maximizing its tax revenue. Find the quantity tax rate it should impose on apples.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
Problem 3TY
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