Question
Demand and supply equations were given as Qd = 300 - P,
Qs = P/2 and govt imposes specific tax you had to find quantity at which tax revenue is maximized?Solution
We know that when tax is imposed, Pd = Ps + t Pd – Ps = t 300 – Q = 2Q + t Q* = 100 – t/3 Tax Revenue = t.Q = 100t – t2 / 3 For maximizing tax revenue, 100 – 2t/3 = 0 So, t = 150 Q* = 100 – 50 = 50
More Research Questions
30.02% of 420.11 + 44.96% of 499.96 - 203.12 = ?
? = 340.24 + 1001.97 – 6.992
3.934 - 124.07 + 35.94 + 12.83 of 4.85 - 84.76 ÷ √26 = ?3
- What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)
12.99 × 9.99 + ? × 7 + 240.001 = 21.012
350 ÷ 5 + 30 % of 180 + ? * 12 = 48 * √16
(29.892 × √290) + 32.98 × 6.91 = ?
What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)...
- What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)
(9.013 – 15.04) = ? + 7.98% of 5199.98
