Question: If the inverse demand function for books is p equals 6 8 minus Upper Qp = 6 8 Q and the supply function is Upper
If the inverse demand function for books is
p equals minus Upper QpQ
and the supply function is
Upper Q equals pQp
what is the initial equilibrium? What is the welfare effect of a specific tax of
tau
$
Part
The initial equilibrium quantity is
round your answer to the nearest integer
Part
The specific tax of
tau
$
creates a deadweight loss of
$
round your answer to two decimal plac
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