Suppose the equilibrium for the market of staplers has a price of $ 45 , at which 204.4 staplers are sold. The Government believes staplers are undervalued and imposes a price floor of $ 49.6 under which only 145.8 staplers are transacted, generating a deadweight loss of $ 119.1 . What size tax would mimic the effect that the price floor has on consumers?

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Q: Question 2c - part 1 Given the following information Qp = 240 – 5P Qs = P where Qp is the quantity…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the…

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Q: Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the…

A: Hi student, thanks for posting the question. As per the guideline, we are providing answer for the…

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Q: Question 2c - Part 2 Given the following information Qp = 240 - 5P %3! Qs = P where Qp is the…

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Q: Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the…

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