Question: The inverse demand function for video games is P D (q) = 240 - 2q and the inverse supply function isP S (q) = 3
The inverse demand function for video games isPD(q) = 240 - 2qand the inverse supply function isPS(q) = 3 + q. When the government imposes a $6 tax on firms foreach video game sold,
producer's surplus falls and consumer's surplus increases.
a.consumer's surplus falls by more than producer's surplus.
b.producer's surplus falls by more than consumer's surplus.
c.consumer's surplus and producer's surplus fall by the same amount.
d.consumer's surplus falls and producer's surplus increases.
Please provide detail calculation
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