(i) Consider the inverse demand function for mangos, which is defined by the equation p = 91 ? 5q, where q is the number of crates that are sold. the inverse supply function is defined by p = 3 + 6q. In the past there was no tax on mangos but now a tax of $44 per crate has been imposed.;a) What is equilibrium price and quantity before the tax?;b) What is equilibrium price and quantity after the tax?;c) Who bears the burden of this tax?
Paper#28528 | Written in 18-Jul-2015Price : $22