EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
Author: Miller
Publisher: YUZU
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Question
Chapter 6, Problem 9P
To determine
The following information applies to the market for a particular item in the absence of a unit excise tax:
Quantity Supplied | Quantity Demand | |
4 | 50 | 200 |
5 | 75 | 175 |
6 | 100 | 150 |
7 | 125 | 125 |
8 | 150 | 100 |
9 | 175 | 75 |
- According to the information in the table, in the absence of units excise tax, what is the market price? What is the
equilibrium quantity ? - Suppose that the government decides to subject producers of this item to a unit excise tax equal to $2 per unit sold. What is the new market price? What is the equilibrium quantity?
- What portion of the tax is paid by producers? What portion of the tax is paid by consumers?
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