The figure below shows a market of good C. Suppose that the government levied a tax on C. If the size of the tax is 10, how much is the after-tax equilibrium quantity? If the after-tax equilibrium quantity is 50, how much is the size of the tax? Quantity if tax = 10: Tax if quantity is 50
The figure below shows a market of good C. Suppose that the government levied a tax on C. If the size of the tax is 10, how much is the after-tax equilibrium quantity? If the after-tax equilibrium quantity is 50, how much is the size of the tax? Quantity if tax = 10: Tax if quantity is 50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The figure below shows a market of good C. Suppose that the government levied a tax on C.
If the size of the tax is 10, how much is the after-tax
quantity is 50, how much is the size of the tax?
Quantity if tax = 10:
Tax if quantity is 50:
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