The graph below shows the supply and demand curves in the soft drink market. If the government decides to impose a $4 per unit tax, then how much of the resulting tax revenue is a transfer from consumer surplus? P($) 12 10 8 10 4 2 a 168 + T T-I +1- C a 42 b-61 c-76 d = 104 Demand Supply

The graph below shows the supply and demand curves in the soft drink market. If the government decides to impose a $4 per unit tax, then how much of the resulting tax revenue is a transfer from consumer surplus? P($) 12 10 8 10 4 2 a 168 + T T-I +1- C a 42 b-61 c-76 d = 104 Demand Supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph below shows the supply and demand curves in the soft drink market. If the government
decides to impose a $4 per unit tax, then how much of the resulting tax revenue is a transfer from
consumer surplus?
P($)
12
10
8
10
6
A
1
2
168
a
+-1
4
C
a 42 b-61 c-76 d = 104
Demand
Supply

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