Question: The inverse demand function for apples is defined by the equation p = 2 0 0 5 q , where q is the number of

The inverse demand function for apples is defined by the equation p =2005q, where q is the number
of units sold. The inverse supply function is defined by p =10+4q. A tax of $10 is imposed on
suppliers for each unit of apples that they sell. When the tax is imposed, the quantity of apples sold
falls to
(a)20 apples
(b)25 apples
(c)28 apples
(d)30 apples
(e)15 apples
4. A 10 dollar per unit tax is imposed on waffle makers, which lowers the quantity produced from 87 to
79 and increases the price buyers pay from 19 dollars to 25. The deadweight loss of this tax is
(a)40 dollars
(b)48 dollars
(c)24 dollars
(d)80 dollars
(e)60 dollars
1

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