Essay
Refer to the figure below. Assume that the equation of Dx is P = 50 - 2Xd.
(A)If the original price of the good was $10 and a $4 tax was imposed, what is the tax income? Wha is the excess burden?
(B)How much marginal excess burden will be created if an additional dollar of tax is levied?
(C)How much additional tax is collected?
Correct Answer:
Verified
Correct Answer:
Verified
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