242220A1816+14+SupplyB1210-FH6.4KDemand2+++→164.101214One effect of the tax is toreduce consumer surplus by S36.reduce producer surplus by $24.create a deadweight loss of $20.8.2.

tax reduces the quantity sold from 8 to 4 as a result both producer and consumer surplus decreases.…

24 22- 20 16- 14+ Supply 12- 10+ D F G H J 6+ 4 L Demand 2+ + > 4 8. 10 12 14 16 One effect of the tax is to reduce consumer surplus by $36. reduce producer surplus by $24. create a deadweight loss of S20. O DO

24 22- 20 16- 14+ Supply 12- 10+ D F G H J 6+ 4 L Demand 2+ + > 4 8. 10 12 14 16 One effect of the tax is to reduce consumer surplus by $36. reduce producer surplus by $24. create a deadweight loss of S20. O DO

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

24
22
20
A
18
16+
14+
Supply
B
12
10-
F
H
6.
4
K
Demand
2+
++→
16
4.
10
12
14
One effect of the tax is to
reduce consumer surplus by S36.
reduce producer surplus by $24.
create a deadweight loss of $20.
8.
2.

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