42 4- K L M 3 6 9 12 15 18 21 24 27 30 33 36 39 Refer to Figure 8-8. One effect of the tax is to A. reduce consumer surplus from $180 to $72. B. reduce producer surplus from $96 to $24. C. create a deadweight loss of $72. Demand Quantity

42 4- K L M 3 6 9 12 15 18 21 24 27 30 33 36 39 Refer to Figure 8-8. One effect of the tax is to A. reduce consumer surplus from $180 to $72. B. reduce producer surplus from $96 to $24. C. create a deadweight loss of $72. Demand Quantity

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good.
20
10
222 00 16 2
24
Price
A
18
16
B
14
C
12
F
D
H
G
8
J
4
K
L
M
3 6 9 12 15 18 21 24 27 30 33 36 39
Refer to Figure 8-8. One effect of the tax is to
A. reduce consumer surplus from $180 to $72.
B. reduce producer surplus from $96 to $24.
C. create a deadweight loss of $72.
D. All of the above are correct.
Supply
Demand
Quantity

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