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