a. There will not be a gasoline shortage. When there is a disruption on a substantial
amount of supply in the gasoline market, the supply curve will shift to the left.
The demand curve will not change. The old equil
Supply of balls: Qs = -100,000 + 8,000p
Demand of balls: Qd = 200,000 -7,000p
Q is quantity of balls per month
p is price in cents of one ball
Assume the government imposes a tax of 10 cents per ball.
a. What is the percent of the tax borne by