9. A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Blown Away Manufacturing regularly sold blowers for $100. After the tax is in place, the consumer price for leaf blowers rises to $105. d. What net price is Blown Away receiving after it pays the tax?
9. A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Blown Away Manufacturing regularly sold blowers for $100. After the tax is in place, the consumer price for leaf blowers rises to $105. d. What net price is Blown Away receiving after it pays the tax?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 6QFR
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Transcribed Image Text:3:02
9. A study finds that leaf blowers make too much
noise, so the government imposes a $10 tax on
the sale of every unit to correct for the social cost
of the noise pollution. The tax completely
internalizes the externality. Before the corrective
tax, Blown Away Manufacturing regularly sold
blowers for $100. After the tax is in place, the
consumer price for leaf blowers rises to $105.
d. What net price is Blown Away receiving after it
pays the tax?
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ㅈ
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8
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