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  3. 2 the market for tires is perfectly competitive and the...

Question: 2 the market for tires is perfectly competitive and the...

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2. The market for tires is perfectly competitive, and the demand for tires is given by the function D(p) 8/P while the market supply of tires is given by the function S(p*) -2p where p -p - t is the producer price and t is rice of tires when there is no tax, and when the tax is t - 3. What do vou conclude about t need to use the quadratic equation (use the positive root) Google it!) the excise tax rate. Calculate the equilibrium p he econo mic incidence of this tax? (Hint: Yes, you

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