Suppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in the above figure. One effect of the tax is to reduce consumer surplus by $108. reduce producer surplus by $72. create a deadweight loss of $60. All of the above are correct.

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A: QD=60-p    and QS=2p In market equilibrium QD=QS so p=$20 and quantity =40 units

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Q: Calculate: Producer surplus before tax

A:

Q: P.B=100 R P=80 P₁=75 1. P P.S=0 =60 1500 1875 S₁=MC D₁=MV Q . Consider the equilibrium after the…

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Q: Suppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in…

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Q: Question 18 When a tax is imposed, consumer surplus and producer surplus are reallocated to tax…

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Q: deadweight loss because Select the correct answer below: the price consumers pay and producers…

A:

Q: Suppose an additional "special" tax of $0.10 per litre is imposed on the sale of gasoline in one…

A: Here, before tax price is $1.30 and after the imposition of $0.10, new price is $0.38.