Astudy finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on the sale of every unit. this amount accurately accounts for the external cost of the noise pollution. before the corrective tax, basic push mowers regularly sold for $190. after the tax is in place, the market price for basic push mowers rises to $195.
because of the tax, the number of basic push mowers sold will increase or decrease?
the socially optimal price of basic push mowers is $
the private market price is $
a firm selling basic push mowers receives $ after it pays the tax.
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Astudy finds that the noise from lawn mowers is harmful; hence, the government imposes a $25 tax on...
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