sing the data in test yourself question 1, if the price of X to consumers is $9, and the government imposes a tax of $2 per unit, show that because suppliers get only $7, they will produce only 85 units of output, not the 95 units of output they would produce if they received the full $9 per unit. ( side note ) I am unsure of what I need to show, if I draw a graph with the supply line changing with that data it matches the demand line of the original data. or do I need to create a new chart with new data?

Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
1st Edition
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:HOUGHTON MIFFLIN HARCOURT
Chapter3: Graphing Linear Functions
Section: Chapter Questions
Problem 1CA
icon
Related questions
Question

Using the data in test yourself question 1, if the price of X to consumers is $9, and the government imposes a tax of $2 per unit, show that because suppliers get only $7, they will produce only 85 units of output, not the 95 units of output they would produce if they received the full $9 per unit.

 

( side note ) I am unsure of what I need to show, if I draw a graph with the supply line changing with that data it matches the demand line of the original data. or do I need to create a new chart with new data?

Key Terms
direct controls 334
externality 326
pollution charges (taxe
emissions) 334
emissions permits 336
Test Yourself
1. Production of Commodity X creates 10 pounds of emis-
sions for every unit of X produced. The demand and
supply curves for X are described by the following table:
Quantity
Demanded
Quantity
Supplied
Price
$10
80
100
6.
85
90
90
95
85
6.
100
80
105
75
007
Transcribed Image Text:Key Terms direct controls 334 externality 326 pollution charges (taxe emissions) 334 emissions permits 336 Test Yourself 1. Production of Commodity X creates 10 pounds of emis- sions for every unit of X produced. The demand and supply curves for X are described by the following table: Quantity Demanded Quantity Supplied Price $10 80 100 6. 85 90 90 95 85 6. 100 80 105 75 007
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning