ch2_p2 - a. Compute the supply and demand for truck hoods....

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2_2. Midcontinent Plastics makes 80 fiberglass truck hoods per day for large truck manufacturers. Each hood sells for $500.00. Midcontinent sells all of its product to the large truck manufacturers. If the own price elasticity of demand for hoods is -0.4 and the price elasticity of supply is 1.5.
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Unformatted text preview: a. Compute the supply and demand for truck hoods. b. If the local county government imposed a per unit tax of $25.00 per hood manufactured, what would be the new equilibrium price of hoods to the truck manufacturer? c. Would a per unit tax on hoods change the revenue received by Midcontinent?...
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