Astudy finds that the noise from lawn mowers is harmful; hence, the government imposes a $30 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 $208. because of the tax, the number of basic push mowers sold will . 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.

(1) Due to the imposition of the tax by the government, the no. of  basic push mowers sold will decrease. Tax imposition increases the price of mowers which directly reduces the consumers demand for the mowers. Therefore, there is a fall in the sale of mowers.

(2) The socially optimal price of basic push mowers is equal to the market price of the mower after the taxes i.e, $208.

(3) The private market price is equal to the price of mowers before the taxes i.e, $190.

(4) A firm selling basic push mowers receives $178 after it pays the tax.

Amount the firm will get after paying the tax:

= new price - tax amount

= $208 - $30

= $178

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