2. A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price per T- shirt $19 16 13 10 7 4 Quantity demanded O 10 20 30 40 50 Quantity supplied 60 50 40 30 20 10 b. What are the equilibrium quantity demanded and quantity supplied after the tax is 185 implemented? Determine the consumer and producer surplus after the tax.
2. A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price per T- shirt $19 16 13 10 7 4 Quantity demanded O 10 20 30 40 50 Quantity supplied 60 50 40 30 20 10 b. What are the equilibrium quantity demanded and quantity supplied after the tax is 185 implemented? Determine the consumer and producer surplus after the tax.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 16RQ: What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the...
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Question
![11:51
OT
=
2. A cash-starved town decides to impose a $6
excise tax on T-shirts sold. The following table
shows the quantity demanded and the quantity
supplied at various prices.
Price per T-
shirt
←
$19
16
13
10
7
4
Quantity
demanded
1
O
10
20
30
40
50
+
Quantity
supplied
3
60
50
40
b. What are the equilibrium quantity demanded
185 and quantity supplied after the tax is
implemented? Determine the consumer and
producer surplus after the tax.
30
20
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F153a5c00-9fe8-4dc2-ae6b-bdd1a996badc%2Fc33b416d-9b91-4532-89c5-43815fb62647%2Fc8da7qw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11:51
OT
=
2. A cash-starved town decides to impose a $6
excise tax on T-shirts sold. The following table
shows the quantity demanded and the quantity
supplied at various prices.
Price per T-
shirt
←
$19
16
13
10
7
4
Quantity
demanded
1
O
10
20
30
40
50
+
Quantity
supplied
3
60
50
40
b. What are the equilibrium quantity demanded
185 and quantity supplied after the tax is
implemented? Determine the consumer and
producer surplus after the tax.
30
20
10
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