16 If instead of taxing Hot Air’s profit the government imposes a sales tax on balloon rides of £30 a ride, what are the new profit-maximising quantity, price and economic profit?

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 (pounds Quantity demanded Total cost (pounds per month) per ride) (rides per month) 220 0 80 200 1 160 180 2 260 160 3 380 140 4 520 120 5 680