ng.cengage.comCENGAGE MINDTAPChapter 08 Problems & ApplicationsSuppose that a tax of T is placed on buyers, so the new demand equation is as follows:QD=240 - (P+T)The new equilibrium price is now P = 80and the new equilibrium quantity is Q = 160 - 2.Tax revenue is Tx Q.Use the green points (triangle symbol) to graph tax revenue for the following tax (T) values: 0, 30, 90, 120, 150, 210, and 240.Tax Revenue (Thousands of dollars)22121088620050306090120150180210240270300TLaffer CurveThe following graph shows the old and new equilibrium Information and now the deadweight loss of a tax is the area of the triangle between the88aDIIDD

The demand curve after the tax on buyers is given by:QD=240−(P+T), where T is the tax on buyersNow,…

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Principles of Economics 2e

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Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...

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