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Review Quiz: Topic 5: Max and Score: 0 of 10 pts X Problem 4.6.10 In a competitive market the supply and demand functions of a good are given P=20s +13 P= -20p +30 Suppose that the government levies an excise tax, t, per unit. a) Find an expression for the equilibrium quantity Q as function of t. b) Find t for which the government's tax revenue, T = tQ is maximised. a) Q = 17-4 (Use integers or fractions for any numbers in the expression. Type an expression b)t = 8.5 (Type an integer or a decimal.)

Answer 1

s Demand: p" --24 + 30. tetat per un'it Supply : pse pas + 13 E "At equilibrium : pl. ps=t. -26 +30 -(20+13)-t -4.66 +11=t 1517-4261 57 Tax revenue : Tate. T= t (124) = 174-42 differentiating T writt et 17-2to C at