Suppose the Weekly Demand Function Is and the Supply

question 14

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:

Outward Shift

A term often used in economics to describe a situation where a curve, such as the supply or demand curve, moves away from the origin, indicating an increase in supply or demand.

Production Possibility Frontier

A curve depicting the maximum achievable combination of two goods that can be produced with available resources and technology.

Technological Improvements

Advancements or enhancements in technology that lead to more efficient processes, better products, or improved ways of doing things.

Outward Shift

In economics, refers to the movement of a curve away from the origin in a graph, indicating an increase in quantity supplied or demanded due to various factors.