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

Question 3

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=2Q5P = 2 Q ^ { 5 } . Suppose that the government imposes a $3 tax on this market. What is the change in consumer surplus due to the tax?


A) $450.
B) $420.50.
C) $29.50.
D) $0.50.

Correct Answer:

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