analysis of the video poker market in Rye shows demand by the patrons is Qd=200-2P and the supply is Qs=2P now suppose that the city of Rye passes a law that requires all video poker arcades to contribute m cents to a city charitable fund for each game played on there machines, this is essentially a excise tax. In a diagram show the effect of the new law on the market ( Do not try to give a algebraic solution, just show what happens graphically and describe. Please illustrate how the tax of m shifts the specific curves. In the approach of modeling taxes and subsidies. The direction of the shift carries a specific meaning in economics. graphically indicate the incidence of taxation on consumers as well as arcade owners. Explain what incidence of taxation is and what the graph tells you the jncidence of this case.
analysis of the video poker market in Rye shows demand by the patrons is Qd=200-2P and the supply is Qs=2P
now suppose that the city of Rye passes a law that requires all video poker arcades to contribute m cents to a city charitable fund for each game played on there machines, this is essentially a excise tax.
In a diagram show the effect of the new law on the market ( Do not try to give a algebraic solution, just show what happens graphically and describe. Please illustrate how the tax of m shifts the specific
graphically indicate the incidence of
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