Question
1 The market for dry cat food has a supply and demand given by the following: QD = 500 - 20p QS = 5p -
1 The market for dry cat food has a supply and demand given by the following: QD = 500 - 20p QS = 5p - 25
If the government imposes a tax of $10, what will be the deadweight loss? DWL = _______200______. 5(p+10)-25
2 The market for dry cat food has a supply and demand given by the following: QD = 1000 - 5p QS = 20p - 100
If the government imposes a tax of $15, what will be the deadweight loss? DWL = _____450____. 20(p-15)-100
compare with question 1 and 2 that government both imposes a tax and i confused about why question function is 5(p+10)-25.
and question 2 function are decrease 20(p-15)-100
please explain thank you
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