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Suppose the market demand function for ice cream is Qd = 10 - 2P and the...

Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs= 4P - 2, 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 produced. The price received by sellers with the tax is:

$2.33.

$1.50.

$1.73.

$1.83.
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Ans. d. $1.83.

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