The demand and cost functions for a particular commodity are (4) \( 3 q+p=14 ; C(q)=q^{2}+5 q \) respectively, where \( q \) is the level of output. a) What will be the new equilibrium quantity after a tax of Rs 2 is imposed. b) Determine the tax rate and maximum tax revenue obtainable by government.
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- Demand function: \( 3q + p = 14 \) - Cost function: \( C(q) = q^2 + 5q \) Show more…
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