The graph below shows a market for beer, which in equilibrium has an equilibrium market price...

 

Transcribed Image Text:

The graph below shows a market for beer, which in equilibrium has an equilibrium market price of $10 per six-pack and an equilibrium quantity of 40 million six-packs being sold. Use the graph to answer questions 12-14. Market for Beer Price ($/6-pack) $32.50 $30.00 $27.50 $25.00 $22.50 $20.00 $17.50 $15.00 $12.50 $10.00 $7.50 $5.00 $2.50 $0.00 10 20 30 40 Demand 50 Supply 60 80 70 Quantity (millions of six-packs) If the government were to impose a $5 per unit tax on beer, what would be the impact on market price? The graph below shows a market for beer, which in equilibrium has an equilibrium market price of $10 per six-pack and an equilibrium quantity of 40 million six-packs being sold. Use the graph to answer questions 12-14. Market for Beer Price ($/6-pack) $32.50 $30.00 $27.50 $25.00 $22.50 $20.00 $17.50 $15.00 $12.50 $10.00 $7.50 $5.00 $2.50 $0.00 10 20 30 40 Demand 50 Supply 60 80 70 Quantity (millions of six-packs) If the government were to impose a $5 per unit tax on beer, what would be the impact on market price?

Answer rating: 100% (QA)

Imposing a 5 per unit tax on beer will increase the price of beer b... View the full answer