Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. Price 24 22+ 20 18 Supply 16- B 14 12- 10+ D F G 6+ 4- K `Demand 2- 369 12 15 18 21 24 27 30 33 36 39 Quantity Refer to Figure 8-8. One effect of the tax is to O reduce producer surplus from $96 to $24. O create a deadweight loss of $72. O reduce consumer surplus from $180 to $72. O All of the above are correct. MN 00
Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. Price 24 22+ 20 18 Supply 16- B 14 12- 10+ D F G 6+ 4- K `Demand 2- 369 12 15 18 21 24 27 30 33 36 39 Quantity Refer to Figure 8-8. One effect of the tax is to O reduce producer surplus from $96 to $24. O create a deadweight loss of $72. O reduce consumer surplus from $180 to $72. O All of the above are correct. MN 00
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 11SCQ: If a price floor benefits producers, why does a price floor reduce social surplus?
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