The market demand and supply functions for Easton Redline slow-pitch softball bats are:
Q_D = 12 - 0.04P and Q_S = 0.01P + 2. Calculate the equilibrium quantity and price and point elasticity of demand in equilibrium. Next, calculate consumer surplus. Suppose the Easton bats are taxed $25 per unit. Calculate the revenues generated by the tax. Calculate the loss in consumer surplus. What percentage of the burden of the tax is paid for by consumers?

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The Answer of The market demand and supply functions for Easton Redline slow-pitch softball bats are: Q_D = 12 - 0.04P and Q_S = 0.01P + 2. Calculate the equilibrium quantity and price and point elasticity of demand in equilibrium. Next, calculate consumer surplus. Suppose the Easton bats are taxed $25 per unit. Calculate the revenues generated by the tax. Calculate the loss in consumer surplus. What percentage of the burden of the tax is paid for by consumers?

The Market Demand and Supply Functions for Easton Redline Slow-Pitch