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Suppose That a Market Is Initially in Equilibrium P=90QdP = 90 - Q ^ { d }

Question 83

Multiple Choice

Suppose that a market is initially in equilibrium. The initial demand curve is P=90QdP = 90 - Q ^ { d } . The initial supply curve is P=2QsP = 2 Q ^ { s } . Suppose that the government imposes a $3\$ 3 tax on this market. What is the change in producer surplus due to the tax?


A) $900\$ 900 .
B) $841\$ 841 .
C) $59\$ 59 .
D) $29.50\$ 29.50 .

Correct Answer:

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