The XYZ company is a producer of dishwashers. The company's marketing department has estimated the following demand curve for the company's best-selling model in one of its regions. Q = 2000 - 4P + 6A + 5P_C- 4A_C+ 5I where Q = Number of dishwashers demanded P = $600; Price of dishwashers A = $150; Advertising expenditures (thousands) I = $50; GDP per capita (thousands) P_C = $500; Competitor's price A_C = $200; Competitor's advertising expenditures (thousands)

If the government increases the sales tax by 1 percent, what will be the sale price of dishwashers after the tax (assume that the elasticity of demand is equal to the elasticity of supply in absolute value).

Answer