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Don't use chatgpt and make sure you include the graphs needed   (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?

Don't use chatgpt and make sure you include the graphs needed   (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?

Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
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Don't use chatgpt and make sure you include the graphs needed

 

(a) Suppose in a competitive market, the market demand curve for salt is infinitely
inelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the price
of salt that consumers pay?
(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve is
Q = 2P. Suppose the government announces a per-unit tax of 1 on the price
of butter. Tax on butter can be seen as a ’fat tax’. What is the overall effect
of a fat tax on the consumers? 
(c) If you were a policymaker and wanted to promote a fat tax in the UK, what
would you cover in your policy campaign?

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