Suppose the market for soft drinks is given by: Demand: P=181-1.7Q Supply:P=1.30 The government wants to discourage unhealthy eating habits and so imposes a tax that reduces the market equilibrium quantity by 11. How much of the tax revenue generated was previously captured by producers at equilibrium? Oa. $314.60 O b. $170.00 O c. $705.47 Od. $117.97
Suppose the market for soft drinks is given by: Demand: P=181-1.7Q Supply:P=1.30 The government wants to discourage unhealthy eating habits and so imposes a tax that reduces the market equilibrium quantity by 11. How much of the tax revenue generated was previously captured by producers at equilibrium? Oa. $314.60 O b. $170.00 O c. $705.47 Od. $117.97
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
Problem 7PA
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