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Mathematics, 11.04.2020 21:52 alani64
Draw a supply and demand graph for cookies, showing the equilibrium price and quantity. On the same graph, assume that the government imposes a $5 tax on cookies. Show on the graph the following:
• what happens to the price paid by the buyers,
• what happens to the price received by the sellers,
• the size of the tax,
• what happens to the quantity sold,
• what the consumer surplus is after the tax,
• what the producer surplus is after the tax,
• what the government tax revenue is after the tax, and
• what the deadweight loss is after the tax
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Answers: 1
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Draw a supply and demand graph for cookies, showing the equilibrium price and quantity. On the same...
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