1.The demand and supply schedules for coffee are given in the table. a.If there is no tax on coffee, what is the price of a cup of coffee and how much coffee is bought? b.If a tax of 75¢ a cup is introduced, what is the price of a cup of coffee and how much coffee is bought? Who pays the tax?

1.The demand and supply schedules for coffee are given in the table. a.If there is no tax on coffee, what is the price of a cup of coffee and how much coffee is bought? b.If a tax of 75¢ a cup is introduced, what is the price of a cup of coffee and how much coffee is bought? Who pays the tax?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 3SQP

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Question

1.The demand and supply schedules for coffee are given in the table.

a.If there is no tax on coffee, what is the price of a cup of coffee and how much coffee is bought?

b.If a tax of 75¢ a cup is introduced, what is the price of a cup of coffee and how much coffee is bought? Who pays the tax?

Quantity
supplied
(cups per hour)
Price
Quantity
(dollars per
cup)
demanded
1.50
90
30
1.75
70
40
2.00
50
50
2.25
30
60
2.50
10
70

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