Figure: The vertical distance between points A and C represents a tax in the ma 1000 Price 900 800- 700 600- 500 400 300 200 100- Supply Demand 10 20 30 40 50 60 70 80 90 100110 Quantity Refer to Figure. After the taxes a. there will be a loss to the consumers of the amount $4,000. there will be a loss to the consumers of the amount $6,000.
Figure: The vertical distance between points A and C represents a tax in the ma 1000 Price 900 800- 700 600- 500 400 300 200 100- Supply Demand 10 20 30 40 50 60 70 80 90 100110 Quantity Refer to Figure. After the taxes a. there will be a loss to the consumers of the amount $4,000. there will be a loss to the consumers of the amount $6,000.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...
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![QUESTION 7
Figure: The vertical distance between points A and C represents a tax in the market.
1000
900
Price
800
700
600
500
400-
300
200-
100-
b.
Supply
Demand
10 20 30 40 50 60 70 80 90 100110 Quantity
Refer to Figure. After the taxes
a. there will be a loss to the consumers of the amount $4,000.
there will be a
loss to the consumers of the amount $6,000.
C. there will be a loss to the consumers of the amount $2,000.
d. there will be a loss to the consumers of the amount $8,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd80e374f-418f-4843-9a84-5fc593dab54a%2Ff6f52bbe-0b2b-40a3-8392-2e65777a2577%2Fl6g9zvd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 7
Figure: The vertical distance between points A and C represents a tax in the market.
1000
900
Price
800
700
600
500
400-
300
200-
100-
b.
Supply
Demand
10 20 30 40 50 60 70 80 90 100110 Quantity
Refer to Figure. After the taxes
a. there will be a loss to the consumers of the amount $4,000.
there will be a
loss to the consumers of the amount $6,000.
C. there will be a loss to the consumers of the amount $2,000.
d. there will be a loss to the consumers of the amount $8,000.
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