Suppose the equilibrium for the market of staplers has a price of $49 , at which 136 staplers are sold. The Government believes staplers are undervalued and imposes a price floor of $57 under which only 72 staplers are transacted, generating a deadweight loss of $382. What size tax would mimic the effect that the price floor has on consumers? Answer:

Suppose the equilibrium for the market of staplers has a price of $49 , at which 136 staplers are sold. The Government believes staplers are undervalued and imposes a price floor of $57 under which only 72 staplers are transacted, generating a deadweight loss of $382. What size tax would mimic the effect that the price floor has on consumers? Answer:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 14QP

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