Create two demand and supply diagrams in powerpoint to demonstrate the following:   In your first diagram show the negative externality of consuming too much fast food. Carefully label your diagram and identify the deadweight loss.   In your second diagram add a tax to this market. Highlight what happens to consumption.   In a dot point below your last diagram briefly tell us whether the second diagram has a deadweight loss.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 1SQP
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Create two demand and supply diagrams in powerpoint to demonstrate the following:

 

In your first diagram show the negative externality of consuming too much fast food. Carefully label your diagram and identify the deadweight loss.

 

In your second diagram add a tax to this market. Highlight what happens to consumption.

 

In a dot point below your last diagram briefly tell us whether the second diagram has a deadweight loss.

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