Question: Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule, and columns 2 and 3 set out the total cost schedule:
Price Quantity Total cost
(dollars per ride) (rides per month) (dollars per month)
220 0 80
200 1 160
180 2 260
160 3 380
140 4 520
120 5 680
If instead of taxing Hot Air's profit, the government imposes a sales tax on balloon rides of $30 a ride, what are the new profit-maximizing quantity, price, and economic profit?