If the government imposes a tax on Hot Air€™s profit, how do its output and price change?
Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule:

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Price Quantity demanded Total cost dollars rides per month) (dollars per month) 80 160 260 380 520 680 per ride) 220 200 180 160 140 120