In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 28 - q and the supply function before taxation is p= 4 + 39, what tax per item will maximize the total revenue? /item

In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 28 - q and the supply function before taxation is p= 4 + 39, what tax per item will maximize the total revenue? /item

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section6.4: The Relationship Between Taxes And Elasticity

Problem 4ST

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Question

In this problem, p is the price per unit in dollars and q is the number of
units.
If the weekly demand function is p = 28 - q and the supply function before
taxation is p = 4 + 39, what tax per item will maximize the total revenue?
$
/item

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