Price (per ton) $60 50 20 O $10 for buyers and $30 for sellers 60 70 Quantity (millions of tons) $30 for buyers and $10 for sellers % Refer to Figure 4-8. The supply curve S ₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S 2. Which of the following states the actual burden of the tax? The entire $40 falls on sellers. S2 The entire $40 falls on buyers. D

Price (per ton) $60 50 20 O $10 for buyers and $30 for sellers 60 70 Quantity (millions of tons) $30 for buyers and $10 for sellers % Refer to Figure 4-8. The supply curve S ₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S 2. Which of the following states the actual burden of the tax? The entire $40 falls on sellers. S2 The entire $40 falls on buyers. D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q26
2.40 2.00 1.60 1.20 0.80 0.40 0 600 O1200 12000 13000 14000 15000 Supply Demand 16000 If a price ceiling of $0.80 is imposed on this market, what is the dead weight loss? O 400 800
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