The vertical distance between points A and B represents the tax inthe market.241610price$ 6$ 210$ 14BThe deadweight loss of the tax on sellers is$ 42070 100Squantity The vertical distance between points A and B represents the tax inthe market.241610price$2470 100$16$8$10SThe price that seller receive after the tax is imposed isquantity

A price ceiling is a price control measure by the government. The government decides the maximum…

Answered: The vertical distance between points A…

The vertical distance between points A and B represents the tax in the market. 24 16 10 price $6 $ 210 $ 14 70 The deadweight loss of the tax on sellers is $ 420 100 S quantity

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

100%

The vertical distance between points A and B represents the tax in
the market.
24
16
10
price
$ 6
$ 210
$ 14
B
The deadweight loss of the tax on sellers is
$ 420
70 100
S
quantity

The vertical distance between points A and B represents the tax in
the market.
24
16
10
price
$24
70 100
$16
$8
$10
S
The price that seller receive after the tax is imposed is
quantity

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Step 1: Define price control

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Step 3: Find the sellers price after tax

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