Question: At a perfect competitive market, the demand function for grapes is given by q = 67 - 0, 1 p where p is the price

At a perfect competitive market, the demand function for grapes is given byq = 67 - 0, 1_pwhere_pis the price in dollars per crate andqis the number of crates of grapes demanded per week.

A. Find the elasticity of demand and show that the demand is unit elastic whenp = 335

B. At the same market, the inverse supply function is given byp = 2q - 74. If there is no tax orsubsidy, calculate the equilibrium price and equilibrium quantity.

C. The government decides to impose a tax oft=$12per crate calculate the consumer tax incidence and the change of the consumer after tax.

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