Question

(1 point) Each day, Alice is willing to pay up to $60 for a first cup of coffee, up to $54 for a second, and up to $45 for a third. Each day, it costs Bob $33 to produce a first cup of coffee, $39 to produce a second, and $45 to produce a third. Each day, Alice buys three cups of coffee from Bob for $45 each. One day, the government imposes a sales tax of $27 per cup of coffee With the new tax in place, how many cups does Alice buy from Bob each day? At what price? What is the amount of the deadweight loss due to the tax?

Answer 1

Alice is willing to pay up to A Go to the first cup of coffee 4 su to a second #ur to a third. Bob $33 to produce first cop of coffee. 4 39 to produce a second 4 45 to produce a third. Eachday Alice buys 3 cope of coffee from Bob to Bus sch - Tax of #27 pa cup of coffee. coffee of Bed cast as 33427 = 860. Alice as auo willing to pay a Go for first coffee. so. The details below. 1. - cop of coffee from Bob Each day. a Alice buy one with new tax. in price as #80 rc Dead weight loss

- 0.5 (60-33)(3-1) 2015 (27) (2) s 27,