Let Q be quantity of beer (in packs) consumed in the US. Assume beer consumption imposes a negative externality of $30 per pack. The private demand for beer while the private supply curve is P=Q. If the government impose a $30 tax per pack of beer, what is the change in total surplus from before to after the imposition $150 $1,350 $150 $1,350 A Moving to another question will save this response. «< Question Close

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
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Let Q be quantity of beer (in packs) consumed in the US. Assume beer consumption imposes a negative externality of $30 per pack. The private demand for beer is P=150-2Q
while the private supply curve is P-Q. If the government impose a $30 tax per pack of beer, what is the change in total surplus from before to after the imposition of the tax.
$150
$1,350
$150
$1,350
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Transcribed Image Text:Let Q be quantity of beer (in packs) consumed in the US. Assume beer consumption imposes a negative externality of $30 per pack. The private demand for beer is P=150-2Q while the private supply curve is P-Q. If the government impose a $30 tax per pack of beer, what is the change in total surplus from before to after the imposition of the tax. $150 $1,350 $150 $1,350 Moving to another question will save this response. «< Question 17 of 25 » Close Window
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