1. (Figure 1: Com Market) Refer to Figure 1. Suppose that a tax equal to $1.80 is implemented in this market. How muchrevenue will the tax generate?$4.50Price$4.00$3.50$3.00$2.70$2.50$2.30$2.00$1.70$1.50$1.00$0.50005,00010,00015,00020,000 25,000 30.000 35,000 40,000 45.00023,00050,000Quantity

With a tax of $1.8 , there is a wedge which is created between the price that the seller receive and…

Answered: 1. (Figure 1: Com Market) Refer to…

1. (Figure 1: Com Market) Refer to Figure 1. Suppose that a tax equal to $1.80 is implemented in this market. How much revenue will the tax generate?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 1QR

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Question

1. (Figure 1: Com Market) Refer to Figure 1. Suppose that a tax equal to $1.80 is implemented in this market. How much
revenue will the tax generate?
$4.50
Price
$4.00
$3.50
$3.00
$2.70
$2.50
$2.30
$2.00
$1.70
$1.50
$1.00
$0.50
0
0
5,000
10,000
15,000
20,000 25,000 30.000 35,000 40,000 45.000
23,000
50,000
Quantity

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