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Back to Philadelphia. You are hired by the Philadelphia city government to consult on their soda tax. Your undergraduate research assistant estimated these supply and

Back to Philadelphia. You are hired by the Philadelphia city government to consult on their soda tax. Your undergraduate research assistant estimated these supply and demand equations for soda in Philadelphia:

QD= 350 - 50P

QS = -400 +200P

The original $2 tax/unit has not generated as much revenue as hoped and people in the city government are arguing about how to generate more tax revenue.

They turn to you and ask you to find the tax that maximizes revenue generated. What is it? Show your work and explain it.

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