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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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