EBK MICROECONOMICS
4th Edition
ISBN: 8220103647830
Author: KRUGMAN
Publisher: MAC HIGHER
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Question
Chapter 7, Problem 1P
To determine
a. The government tax revenue in 2015 from the excise tax
b. On January 1, 2016, the total excise tax increased to $6.20 per ticket. What is the quantity of tickets transacted now? What is the average ticket
c. Does this increase in the excise tax increase or decrease the government tax revenue?
Concept Introduction:
Excise tax - It is a tax paid at the time of the purchase of good. It is included in the price of the product.
Supply - Supply is the quantity of a commodity that producer is willing to sell at a particular price in a given period of time.
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