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3. A similar problem, but with a non-linear demand: the market for portable external mobile phone...

3. A similar problem, but with a non-linear demand: the market for portable external mobile phone batteries faces demand, qd = 2000p −1 d (CED demand), and a linear supply curve of qs = 1 4 ps − 5 where all quantities are in (where all quantities are in 10,000, so if your answer is 32.4512, then this implies 324,512 batteries). (a) Find the elasticities of demand and supply. (b) With a tax of $3.25 per unit, find the new quantity and price(s). (c) Who bears the higher burden? How do you know?

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