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See Hint (1 point) Part 1 The supply of smart watches is linear and upward sloping, and the demand for smart watches is linea

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Answer #1

A) Tax revenue = (7000+16800)-9800 = 14000

B) Per unit tax

Since DWL = 9800 and change in quantity = 1400

DWL = 0.5*change in quantity*per unit tax

9800 = 0.5*1400*tax

9800 = 700*t

t = 9800/700 = 14

C) Since tax revenue = 14000 and tax = 14

tax revenue = quantity*tax

14000 = q*14

q = 14000/14 = 1000

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