Consider an industry with 100 identical firms. Each firm acts as a price taker and each has a cost function given by TC=200 + 4q +2q^2. Suppose that demand in this market is given by Q subscript D= 800-5p.

Suppose in the short run, instead of a per- unit tax, there is sales tax of 7%. Set up the equation or equations that you would use to find the equilibrium in this case. (You do not need to solve for equilibrium here.)