The market demand and supply functions for pizza are: Q_D = 25,000 - 1,500P and Q_S = 2,500P - 15,000. Calculate the consumer and producer surplus. Suppose the local community charges a $1 per pizza tax. Calculate the new levels of consumer and producer surplus. Does the gain in tax revenue offset the losses in consumer and producer surplus associated with the tax?

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The Answer of The market demand and supply functions for pizza are: Q_D = 25,000 - 1,500P and Q_S = 2,500P - 15,000. Calculate the consumer and producer surplus. Suppose the local community charges a $1 per pizza tax. Calculate the new levels of consumer and producer surplus. Does the gain in tax revenue offset the losses in consumer and producer surplus associated with the tax?

The Market Demand and Supply Functions for Pizza Are: QD

The Market Demand and Supply Functions for Pizza Are: Q_D