If the inverse demand function for books is p = 60 - q and the supply function

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If the inverse demand function for books is p = 60 - q and the supply function is q = p, what is the initial equilibrium? What is the welfare effect of a specific tax of ( = $2 per unit on the equilibrium, CS, PS, welfare, and DWL?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Dec 29, 2017 12:55 AM

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If the inverse demand function for books is p = 60 - q and the supply function

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The initial equilibrium is Q 30 p 30 The tax reduces output to ...View the full answer

Microeconomics Theory and Applications with Calculus

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