Price of Airline Tickets Supply Pc Pe Pp Demand Qe Q1 Quantity of Airline Tickets The figure shows demand and supply in the market for airline tickets. The government decides to introduce an excise tax that pushes up the price for consumers from Pe to Pc and decrease quantity supplied from Qe to Q1 . (Figure: Airline Tickets) On the Figure, the area indicating the tax revenue transferred from consumer surplus is: B and F O B and C O B O Fand G

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Price of Airline Tickets
Supply
Pc
Pe
Pp
Demand
Qe
Q1
Quantity of Airline Tickets
The figure shows demand and supply in the market for airline tickets. The government decides
to introduce an excise tax that pushes up the price for consumers from Pe to Pc and decrease
quantity supplied from Qe to Q1 .
(Figure: Airline Tickets) On the Figure, the area indicating the tax revenue transferred from
consumer surplus is:
B and F
O B and C
O B
O Fand G
Transcribed Image Text:Price of Airline Tickets Supply Pc Pe Pp Demand Qe Q1 Quantity of Airline Tickets The figure shows demand and supply in the market for airline tickets. The government decides to introduce an excise tax that pushes up the price for consumers from Pe to Pc and decrease quantity supplied from Qe to Q1 . (Figure: Airline Tickets) On the Figure, the area indicating the tax revenue transferred from consumer surplus is: B and F O B and C O B O Fand G
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