Questions 200 1. The inverse demand for table salt is P = d' while the inverse supply of table salt is p = 10 + 2qs. a. Find the equilibrium price of table salt before AND after the imposition of a 40% ad valorem tax on the consumers of table salt. [2] b. Describe the distribution of the burden (incidence) of this ad valorem tax between consumers and producers. [2] c. Find and interpret the price elasticity of supply (es) at the after-tax equilibrium price and quantity. [2] 2. Suppose the short-run cost function of Tyrell Corporation is c = 5000 + 100q + 8q2. a. Find the level/s of q that satisfies/satisfy the first-order and second-order conditions for the minimisation of Tyrell's average cost (ac). [4] b. Show that ac equals marginal cost (mc) at the level/s of q obtained in (a). [2]