The University of Professional Studies, Accra (UPSA) was founded in 1965 as a private professional business education tuition provider. In 1999, by means of the Institute of Professional Studies Act, (Act 566), it became a tertiary institution with the mandate to provide tertiary and profess ional education in Accountancy, Management and related disciplines. The University has a student population of approximately 12,000. The University now has a state -of-the-art Stude nts ’ Center where food, snacks and drinks are served to students and staff. Nevertheless, a sizeable number of UPSA students patronize Auntie Ama’s (ATM) rice and beans food located at Madina Estate close to the Home Made restaurant. Assume all other restaurants and food joints on campus and at Madina Estate with the exception of ATM food were able to reduce the price of their food. Further, suppose the local municipal authority decides to impose tax on ATM food. With the aid of a diagram, what will be the effect of these events on the equilibrium price and quantity of ATM food assuming the tax has larger impact

The University of Professional Studies, Accra (UPSA) was founded in 1965 as a private professional business education tuition provider. In 1999, by means of the Institute of Professional Studies Act, (Act 566), it became a tertiary institution with the mandate to provide tertiary and profess ional education in Accountancy, Management and related disciplines. The University has a student population of approximately 12,000. The University now has a state -of-the-art Stude nts ’ Center where food, snacks and drinks are served to students and staff. Nevertheless, a sizeable number of UPSA students patronize Auntie Ama’s (ATM) rice and beans food located at Madina Estate close to the Home Made restaurant. Assume all other restaurants and food joints on campus and at Madina Estate with the exception of ATM food were able to reduce the price of their food. Further, suppose the local municipal authority decides to impose tax on ATM food. With the aid of a diagram, what will be the effect of these events on the equilibrium price and quantity of ATM food assuming the tax has larger impact

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.5P

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