Macroeconomics: Private and Public Choice
15th Edition
ISBN: 9781305176799
Author: Gwartney
Publisher: Cengage
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Chapter 17, Problem 11CQ
To determine
Explain the reason for the high-income rate of Country U.
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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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60
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Demand
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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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Chapter 17 Solutions
Macroeconomics: Private and Public Choice
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