In each of the following examples, determine whether the price effect or the quantity effect dominates when the tax is applied. a. The government raises taxes on iPads from $10 per iPad to $20 per iPad. Prior to the tax increase, 10 million iPads were sold each year. The new equilibrium quantity is 9 million iPads.

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?