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Suppose the weekly demand for a product is given by p+2g = 840 and the weekly supply before taxation is given by p = 0.02g +0.62q+7.1. Find the tax per item that produces maximum tax revenue. Round your answer to the nearest cent. A $505.41 tax per item B $498.55 tax per item C $650.17 tax per item D $377.11 tax per item E $506.05 tax per item

Suppose the weekly demand for a product is given by p+2g = 840 and the weekly supply before taxation is given by p = 0.02g +0.62q+7.1. Find the tax per item that produces maximum tax revenue. Round your answer to the nearest cent. A $505.41 tax per item B $498.55 tax per item C $650.17 tax per item D $377.11 tax per item E $506.05 tax per item

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
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Suppose the weekly demand for a product is given by p+2q = 840 and the weekly supply before taxation is given by p = 0.02g +0.62g +7.1. Find the tax per item that produces maximum tax revenue. Round your answer to the nearest cent. A $505.41 tax per item B $498.55 tax per item C $650.17 tax per item D $377.11 tax per item E) $506.05 tax per item
Transcribed Image Text:Suppose the weekly demand for a product is given by p+2q = 840 and the weekly supply before taxation is given by p = 0.02g +0.62g +7.1. Find the tax per item that produces maximum tax revenue. Round your answer to the nearest cent. A $505.41 tax per item B $498.55 tax per item C $650.17 tax per item D $377.11 tax per item E) $506.05 tax per item
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