Question 2 1 pts Figure 8-1 1 Price Supply Demand Quantity Refer to Figure 8-1. Suppose...

Question

Question

Question 2 1 pts Figure 8-1 1 Price Supply Demand Quantity Refer to Figure 8-1. Suppose the government imposes a tax of p-P

Answer 1

Answer #1

The price consumers pay after tax is P'.Consumer surplus is the area above the price level(P') and below the demand curve.

Thus,CS after tax =J

Answer-J

Answer 2

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