The government needs to raise revenue to subsidize the vegetable industry and wants to do so by taxing the fruit industry. Four fruit markets are summarized below. Fruit Markets Apple Banana Cherry Durian Demand P= 163-0.9Q P=163-2.7Q P = 163-3.1Q P=163-2.70 Supply P=6+0.8Q P=6+0.8Q P=6+4.2Q P=6+4.20 If the government imposes a $9.9 per fruit tax on one of these markets, what's the most it could earn? a. $211.06. b. $251.08 c. $856.64 d. $416.08
The government needs to raise revenue to subsidize the vegetable industry and wants to do so by taxing the fruit industry. Four fruit markets are summarized below. Fruit Markets Apple Banana Cherry Durian Demand P= 163-0.9Q P=163-2.7Q P = 163-3.1Q P=163-2.70 Supply P=6+0.8Q P=6+0.8Q P=6+4.2Q P=6+4.20 If the government imposes a $9.9 per fruit tax on one of these markets, what's the most it could earn? a. $211.06. b. $251.08 c. $856.64 d. $416.08
Chapter8: Monopoly
Section: Chapter Questions
Problem 3SQP
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