study finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on the sale of every lawn mower. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, basic push mowers regularly sold for $190. After the tax is in place, the market price for basic push mowers rises to $208. Because of the tax, the number of basic push mowers sold will . The socially optimal price of basic push mowers is $ . The private market price is $ . A firm selling basic push mowers receives $ after it pays the tax.
study finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on the sale of every lawn mower. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, basic push mowers regularly sold for $190. After the tax is in place, the market price for basic push mowers rises to $208. Because of the tax, the number of basic push mowers sold will . The socially optimal price of basic push mowers is $ . The private market price is $ . A firm selling basic push mowers receives $ after it pays the tax.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A study finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on the sale of every lawn mower. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, basic push mowers regularly sold for $190. After the tax is in place, the market
Because of the tax, the number of basic push mowers sold will
.
The socially optimal price of basic push mowers is $ .
The private market price is $ .
A firm selling basic push mowers receives $ after it pays the tax.
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