If the inverse demand curveLOADING... is pequals=120120minus−Q and the marginal cost is constant at $2020, how does charging the monopolyLOADING... a specific tax of tauτequals=$88 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers? As a result of the tax, the profit-maximizingLOADING... quantity ▼ decreases increases by nothing units and the profit-maximizing price ▼ increases decreases by $nothing. (Enter numeric responses using real numbers rounded to two decimal places.)

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.