A sales tax is imposed on the market for good H. Refer to the following graph. D1 isthe demand curve before the sales tax is imposed. D2 is the demand curve after thesales tax is imposed.Use the given information to answer questions 26-31.Price$80$60$55$40$10IIIQuestion 26180 100D₂Find the sales tax per unit.Answer: The sales tax per unit = $.D₁Quantity DQuestion 27Calculate the CS before tax. (Don't forget to multiply 0.5 to get the area of a triangle.)Answer: The CS before tax = $_Question 28Calculate the PS after tax. (Don't forget to multiply 0.5 to get the area of a triangle.)Answer: PS after tax = $Question 29Calculate the DWL. (Don't forget to multiply 0.5 to get the area of a triangle.)Answer: DWL = $

The initial demand and supply curves are D1 and S respectively. Equilibrium in the market occurs at…

A sales tax is imposed on the market for good H. Refer to the demand curve before the sales tax is imposed. D2 is the demand curve after the sales tax is imposed. Use the given information to answer questions 26 - 31.

A sales tax is imposed on the market for good H. Refer to the demand curve before the sales tax is imposed. D2 is the demand curve after the sales tax is imposed. Use the given information to answer questions 26 - 31.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A sales tax is imposed on the market for good H. Refer to the following graph. D1 is
the demand curve before the sales tax is imposed. D2 is the demand curve after the
sales tax is imposed.
Use the given information to answer questions 26-31.
Price
$80
$60
$55
$40
$10
I
I
I
Question 26
1
80 100
D₂
Find the sales tax per unit.
Answer: The sales tax per unit = $.
D₁
Quantity

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