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Refer to the market for tutoring services shown below.

Price per hour $100 80O 60 0 5 814 1824 30Quantity, hours

a. Mark on the graph and calculate total consumer surplus in the market, show work. b. Suppose the government imposes a $60 tax per hour of tutoring income. How will this tax affect the market price and quantity of hours sold? c. Mark and calculate the government tax revenue from this $60 tax. Explain how much of this tax will be paid by consumers and how much by producers. Mark the deadweight loss of this tax on the graph.

math   Statistics-And-Probability   
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Answer #1

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