SOFTDRINK MARKET (CASE # 2) $2,50 32,00 $1,50 S1,05 3,50+ :D 4- 3. 7 89 10 11213 14 15 16 17 18 19 20 QUANTITY OF SOFTDRINKS (In millions g liters) PRICE OF SoFTDRINKS (8/2iter)
SOFTDRINK MARKET (CASE # 2) $2,50 32,00 $1,50 S1,05 3,50+ :D 4- 3. 7 89 10 11213 14 15 16 17 18 19 20 QUANTITY OF SOFTDRINKS (In millions g liters) PRICE OF SoFTDRINKS (8/2iter)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Case II: Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to $1 per liter is levied on soft drink sellers, please answer the following questions:
1. Buyers would spend a total of $____________ million on soft drinks.
2. Sellers would receive a total of $____________ million (after-tax) from selling soft drinks.
3. The government revenue from this tax would be $_____________ million.
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