Suppose the Weekly Demand Function Is and the Supply

question 23

Multiple Choice

Suppose the weekly demand function is and the supply function before taxation is , determine what tax per item will maximize the total tax revenue? ​

• A)$465/item
• B)$205/item
• C)$115/item
• D)$163/item
• E)$128/item

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Definitions:

Entities Under Common Control

Business entities that are directly or indirectly controlled by the same party or parties, typically characterized by shared management or ownership.

Single Customer

Refers to a business situation where a significant portion of a company's revenue comes from sales to one customer.

Intragroup Merchandising Transactions

Transactions occurring between entities within the same group, often involving the sale and purchase of goods.

Unrealised Profits

Profits that have been earned on paper through an increase in value of assets but have not been realized through a transaction.