Suppose the market demand function for ice cream is and the market supply function for ice cream is ,both measured in millions of gallons of ice cream per year.Suppose the government imposes a $0.50 tax on each gallon of ice cream.The price paid by buyers with the tax is
A) $2
B) $2.34
C) $2.50
D) $2.25

Question

Suppose the market demand function for ice cream is  and the market supply function for ice cream is  ,both measured in millions of gallons of ice cream per year.Suppose the government imposes a $0.50 tax on each gallon of ice cream.The price paid by buyers with the tax is
A) $2 
B) $2.34 
C) $2.50 
D) $2.25

Quizplus · Accepted Answer

The Answer of Suppose the market demand function for ice cream is  and the market supply function for ice cream is  ,both measured in millions of gallons of ice cream per year.Suppose the government imposes a $0.50 tax on each gallon of ice cream.The price paid by buyers with the tax is
A) $2 
B) $2.34 
C) $2.50 
D) $2.25

Suppose the Market Demand Function for Ice Cream Is