Examlex

Solved

Suppose That a Market Has the Following Supply and Demand

question 181

Essay

Suppose that a market has the following supply and demand equations:
Demand: QD = 380 - 10p
Supply: QS = 80 + 5p
If the government imposes a specific tax of τ on suppliers,what will be the price buyers pay and sellers receive,quantity,and government revenue from the tax (as functions of τ).What tax level maximizes the revenue the government collects from the tax?


Definitions:

Leaks

Unintended escape of fluids (gas or liquid) from a container or system to the environment.

Incineration

The process of burning waste materials to reduce their volume and sometimes to generate energy.

Hazardous Wastes

Wastes that are dangerous or potentially harmful to public health or the environment due to their toxic, corrosive, ignitable, or reactive properties.

Water Pollution

The contamination of water bodies, such as lakes, rivers, oceans, and groundwater, caused by pollutants.

Related Questions