Price (dollars per case) $33.25 27 22 20 0 Tax 50 90 Supply with tax Supply Demand Quantity (thousands of cases) The figure shows the market for beer. The government plans to impose a per-unit tax in this market. How much is the excess burden?
Price (dollars per case) $33.25 27 22 20 0 Tax 50 90 Supply with tax Supply Demand Quantity (thousands of cases) The figure shows the market for beer. The government plans to impose a per-unit tax in this market. How much is the excess burden?
Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
Problem 8P
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