PRINCIPLES OF MACROECONOMICS-CONNECT ACC
7th Edition
ISBN: 9781264088485
Author: Frank
Publisher: MCG
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Chapter 11, Problem 4RQ
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Identify the roles of capital inflow and outflow to determine investments in new capital goods.
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The graph shows the supply and demand curves of high-fructose corn syrup, a sweetener commonly used in the production of
sweets and soda due to its low cost. In an effort to curb health issues, Congress puts an excise or commodity tax on corn syrup
at $2 per liter.
1. Shade in the region of the graph representing the total tax revenue that this tax will generate.
2. Shade in the region of the graph representing the deadweight loss that this tax will generate.
Price ($) per liter
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9
Supply
8
7
60
5
3
2
Demand
↓
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0
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8.
9
10
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00
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Deadweight Loss
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000
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what is defecit in economy?
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