The table below illustrates the market for Internet services. Use a demand-supply graph to answer the following.Draw a graph of the market for internet services before the tax (only plot the supply and demand functions). Suppose the government imposes a $15 tax per month on the supply side of the market. Sketch the new supply function after the tax. Market for InternetQuantityQuantityPrice ($ perDemandedSupplied (unitsmonth)(units perper month)month)3010251020202030153040104050506060

Initially the demand is measured on X axis and supply is measured on y axis . The equilibrium is…

Answered: Market for Internet Quantity Quantity…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below illustrates the market for Internet services. Use a demand-supply graph to answer the following.

Draw a graph of the market for internet services before the tax (only plot the supply and demand functions).
Suppose the government imposes a $15 tax per month on the supply side of the market. Sketch the new supply function after the tax.

Market for Internet
Quantity
Quantity
Price ($ per
Demanded
Supplied (units
month)
(units per
per month)
month)
30
10
25
10
20
20
20
30
15
30
40
10
40
50
50
60
60

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