3. Now, after much protesting from ice cream buyers, the government changes the tax, and requires sellers to pay the tax, rather than buyers. a. Draw a new diagram for the ice cream market showing this new tax. On your diagram, indicate the tax per gallon, the price paid by consumers, the price received by producers, and the quantity of ice cream sold. NOTE: YOU DO NOT NEED TO CALCULATE ANY SPECIFIC VALUES. SIMPLY INDICATE THESE ITEMS ON YOUR DIAGRAM (WHERE THEY WOULD BE IN RELATION TO EACH OTHER).

3. Now, after much protesting from ice cream buyers, the government changes the tax, and requires sellers to pay the tax, rather than buyers. a. Draw a new diagram for the ice cream market showing this new tax. On your diagram, indicate the tax per gallon, the price paid by consumers, the price received by producers, and the quantity of ice cream sold. NOTE: YOU DO NOT NEED TO CALCULATE ANY SPECIFIC VALUES. SIMPLY INDICATE THESE ITEMS ON YOUR DIAGRAM (WHERE THEY WOULD BE IN RELATION TO EACH OTHER).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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