Price per bin 120 110 100 90 80 70 60 50- 40 30 20 10 O $0 10 20 30 40 50 60 70 80 90 100 Bins of peaches Suppose the figure represents the market for peaches and there are no externalities in the market. Suppose a sales tax of $40 per bin of peaches is levied on consumers of peaches. The new demand curve is labeled D2. Consumer surplus after the tax is: O $1000 D1 O $300 O $100

Price per bin 120 110 100 90 80 70 60 50- 40 30 20 10 O $0 10 20 30 40 50 60 70 80 90 100 Bins of peaches Suppose the figure represents the market for peaches and there are no externalities in the market. Suppose a sales tax of $40 per bin of peaches is levied on consumers of peaches. The new demand curve is labeled D2. Consumer surplus after the tax is: O $1000 D1 O $300 O $100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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