Question: The inverse supply function for pizza is: P S = 1 + Q S The demand function for pizza is: P D = 19 -

The inverse supply function for pizza is:

PS = 1 + QS

The demand function for pizza is:

PD= 19 - 2QD

What's the change in Total Surplus when a $3 tax on consumption is introduced?

(NOTE: You should assume that no tax was in place beforehand)

Answer:

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