Figure 6-26 Tmice 20 18 16 14 12 10 8 6 4 2 D der e 10 20 30 40 50 60 70 S0 90 100 110 120 130 {स Refer to Figure 6-26....

Question

Question

Figure 6-26 Tmice 20 18 16 14 12 10 8 6 4 2 D der e 10 20 30 40 50 60 70 S0 90 100 110 120 130 {स Refer to Figure 6-26. How m

Answer 1

Answer #1

Answer
the tax is the vertical distance between D and D tax
tax per unit =16-8=$8

after-tax equilibrium is at D tax =S
where
Q=60 units
tax revenue =tax per unit *Q=8*60
=$480

Option 1

Answer 2

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