The inverse supply function for pizza is: pS = 1 + QS The inverse demand function for pizza is: PD = 19-2QD What's the change in Total Surplus when a $3 tax on consumption is introduced? (NOTE: You should assume that no tax was in place beforehand) Answer:

The inverse supply function for pizza is: pS = 1 + QS The inverse demand function for pizza is: PD = 19-2QD What's the change in Total Surplus when a $3 tax on consumption is introduced? (NOTE: You should assume that no tax was in place beforehand) Answer:

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section5.A: Appendix: Price Elasticity And Tax Incidence

Problem 1AQ

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The inverse supply function for pizza is:
pS = 1 + QS
The inverse demand function for pizza is:
PD = 19-2QD
What's the change in Total Surplus when a $3 tax on consumption is introduced?
(NOTE: You should assume that no tax was in place beforehand)
Answer:

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