12 11 10 9 10 3 Price D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit to $7.50, then the price paid by buyers would be $10.50, the p sellers would be $3, and the quantity sold in the market would Deadweight loss would now be a $1.50
12 11 10 9 10 3 Price D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit to $7.50, then the price paid by buyers would be $10.50, the p sellers would be $3, and the quantity sold in the market would Deadweight loss would now be a $1.50
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 10PA
Related questions
Question
![The vertical distance between points A and B represents the original tax.
12+
11+
10
9
8
7.
6
Price
2
1
D
05 1 15 2 25 3 35 4 45 5
Quantity
Refer to Figure 8-19. If the government changed the per-unit tax from $5.00
to $7.50, then the price paid by buyers would be $10.50, the price received by
sellers would be $3, and the quantity sold in the market would be 0.5 units.
Deadweight loss would now be
a. $1.50
O b. $0.50
c. $4.0
Od. $0.625](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd931d8f8-aefa-43cb-93a4-cdea2af9ca00%2Fe1d3c06a-8dd4-46f5-b9bf-823b5e46cf6a%2Fk1g4bpr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The vertical distance between points A and B represents the original tax.
12+
11+
10
9
8
7.
6
Price
2
1
D
05 1 15 2 25 3 35 4 45 5
Quantity
Refer to Figure 8-19. If the government changed the per-unit tax from $5.00
to $7.50, then the price paid by buyers would be $10.50, the price received by
sellers would be $3, and the quantity sold in the market would be 0.5 units.
Deadweight loss would now be
a. $1.50
O b. $0.50
c. $4.0
Od. $0.625
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