Major League Baseball institutes a luxury tax on apparel to counterbalance the unfair advantage the Yankees have in national apparel sales. This tax on the Yankees results in new equilibrium values in the hoodie market of $46 / hoodie and 36 thousand hoodies.

Questions #3 - #5 refer to the information below: The market for New York Yankees hoodies is given by the following supply and demand curves: QD = 450 - 9P P: $ / hoodie QS = P Q: thousands of hoodies

3. Equilibrium price and quantity in the Yankee hoodie market are _____ / hoodie and _________ thousand hoodies. a. $10 ; 360 b. $50 ; 50 c. $45 ; 45 d. None of the above are true.

4. Major League Baseball institutes a luxury tax on apparel to counterbalance the unfair advantage the Yankees have in national apparel sales. This tax on the Yankees results in new equilibrium values in the hoodie market of $46 / hoodie and 36 thousand hoodies. What per-hoodie luxury tax has the MLB assessed on the Yankees? a. $1 / hoodie b. $5 / hoodie c. $10 / hoodie d. $20 / hoodie

5. The point elasticity of demand at this tax equilibrium is: a. -0.5 b. -1.0 c. -10.0 d. -11.5

I think I know 3.4, but I am little confusing about 5.

Thank you