Suppose That in a Certain Market, the Demand Function for a Product

question 195

Multiple Choice

Suppose that in a certain market, the demand function for a product is given by and the supply function is given by , where p is the price per unit in dollars and q is the quantity produced. If the government levies a tax of $9 per item on the supplier, who passes the tax on to the consumer as a price increase, find the equilibrium price and quantity after the tax is levied. Round q to the nearest whole number and round p to one decimal place. ​

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Definitions:

Controlling

Exercising authority or influence over a situation or individual to dictate or direct outcomes.

Negative Reinforcement

A process in behavior modification where the removal of an unfavorable outcome or stimulus strengthens the likelihood of a desired behavior.

Buzzer

An electronic device that produces a loud or vibrating sound as a signal or alarm.

Seat Belt

A safety device in vehicles designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.