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QUESTION 6 Suppose instead that the government places a $2 tax on the coffee market (graph is replicated below). P 7 6 5 4 10
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Answer #1

Answer

40

6

4

==========
After-tax the supply curve shifts to the right by the per-unit tax amount.
The new equilibrium is at S+tax=D
where
Q=40 units and Pc=6=price consumer pay
and Ps=4=price producer receives

S+tax 8 S 7 Pc6 PS4 3 2 20 40 60 80 100 Q

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