Assignment 3

Students are to submit answers to the following questions for grading on MyUni by 9pm Friday 30^thApril

Q1. Use this article to help you answer the following questions.

Irish High Court Rules Subway's Sandwich Bread Is Not Legally Bread

Oct 1, 2020, 10:08 amby Kelly Phillips Erb

https://www.forbes.com/sites/kellyphillipserb/2020/10/01/irish-high-court-rules-subways-sandwich-bread-is-not-legally-bread/?sh=2cbed0f94f51

a)Assume the Irish government imposes a 15% tax on Subway sandwiches, use a clearly-labelled diagram to show what happens to price and quantity after the tax change? Is the new sandwich price old price plus tax? (You can assume the curves are linear all the way to the axes) (3 marks)