Write optimal tax rates that government must impose on good


The demand for a pack of 12 golf balls in Albuquerque is P=1000-.1Q, with supply P=30. The demand for golf clubs is 500-.2Q with supply P=75. The city government wishes to impose per-unit taxes on these goods in order to raise $100,000 in revenue to pay for improvements to the water supply system connected to the local golf courses. The government wishes to do this by minimizing overall inefficiencies resulting from the taxes. What are the optimal tax rates that the government should impose on each good?

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Microeconomics: Write optimal tax rates that government must impose on good
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