Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
-
32. Assuming a $7 per unit tax is imposed, the new
price to sellers will be $______.a) 10
b) 12
c) 14
d) 16
e) 19
f) 28
g) 36
h) 48
i) 66
j) 70
k) 84
Transcribed Image Text:28 P
24
20
16
12
8
4
0
0 4 8
12
16
20
S
D
24 Q
Expert Solution
Step 1
The imposition of tax will shift the supply curve to the left by the amount of tax at each unit of Q.
In the above figure, the supply curve shifted to the left $7 at each unit of Q.
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