Question

The following graph shows the daily market for shoes. Suppose the government institutes a tax of $11.60 per pair. This places a wedge between the price buyers pay and the price sellers receive. 50 45 40 Supply ︵35 30 Tax Wedge 25 20 15 10 Demand 0 10 20 30 40 50 60 70 0 90100

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Date To 11-60 f 35-11-60 z2.3.Y esh 72 20 12-s f. 1 6x2- M& Y 299-4 Cas lashe Side

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