The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy, determine the price paid by consumers, the price received by firms, and the number of new cars sold. Finally, determine what share of the tax is paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax.
The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy, determine the price paid by consumers, the price received by firms, and the number of new cars sold. Finally, determine what share of the tax is paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 8888
The alternative policy is to introduce a tax of $3,000 on the sale of new
cars. Under this policy, determine the
firms, and the number of new cars sold. Finally, determine what share of the tax is
paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax.
Full explain this question and text typing work only thanks
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