Connect Problem 06-21The equilibrium price of a pair of earbuds is $30 per unit. Assume now that a tax of $20 is placed on each pair of earbuds.Given the graph below, answer the questions that follow.Price per pair605040302010Market for Bluetooth Earbuds012B34QuantityE56D7 8a) Before the tax, what is the equilibrium price per pair of earbuds? $b) According to the graph, after the tax, what is the price a buyer must pay for a pair of earbuds? $c) According to the graph, after the tax, how much does the seller receive for a pair of earbuds? $d) What happens to the quantity demanded after the tax? decrease30

Demand:Demand is the desire of an individual ability and willingness to pay for a product. The…

a) Before the tax, what is the equilibrium price per pair of earbuds? $ b) According to the graph, after the tax, what is the price a buyer must pay for a pair of earbuds? $ c) According to the graph, after the tax, how much does the seller receive for a pair of earbuds? $ d) What happens to the quantity demanded after the tax? decrease 30

a) Before the tax, what is the equilibrium price per pair of earbuds? $ b) According to the graph, after the tax, what is the price a buyer must pay for a pair of earbuds? $ c) According to the graph, after the tax, how much does the seller receive for a pair of earbuds? $ d) What happens to the quantity demanded after the tax? decrease 30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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