Suppose That a Market Is Initially in Equilibrium $P = 90 - Q ^ { d }$

question 4

Multiple Choice

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { 5 }$ . Suppose that the government imposes a $3 tax on this market. What is the change in producer surplus due to the tax?

• A) $900.
• B) $841.
• C) $59.
• D) $29.50.

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Definitions:

Draft Animals

Animals that are trained and used for heavy physical work, such as plowing fields and pulling carts.

Specialized Farming

Agricultural practices focusing on the cultivation of specific crops or the raising of certain types of livestock, often to maximize efficiency and output.

Shifting Cultivation

A form of agriculture where an area of ground is cleared, cultivated for a few years, and then abandoned for its fertility to naturally replenish.