Question: e effect of a $ 4 per - unit tax on consumers on equilibrium price and quantity. How does the impact on equilibrium prices (
e effect of a $ perunit tax on consumers on equilibrium price and quantity.
How does the impact on equilibrium prices paid by consumers and received by producers and quantity differ between a and b
Draw the supply and demand curves associated with the table below. LO
Price
$
What is equilibrium price and quantity?
What is equilibrium price and quantity with a $ perunit tax levied on suppliers? Demonstrate your answer graphically.
How does your answer to b change if the tax were levied on consumers, not suppliers? Demonstrate your answer graphically.
What conclusion can you draw about the difference between levying a tax on suppliers and consumers?
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