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Price 25 22 19 17 15 10 100 200 250 350 Quantity A$7 tax is imposed on this market. What is the value of producer surplus aft
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Answer #1

Equilibrium Quantity after tax is 100

Price received by seller after tax   is 15

thus, producer surplus after tax  

PS = 1/2(15 - 10)100

= 1/2(5)(100)

= 250   

Hence option (ii) is correct.

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