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-Refer to Figure 16

Question 17

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-Refer to Figure 16.1.Assume that the equation of D<sub>x</sub> is P = 50 - 2Q<sub>d</sub>. (A)If the original price of the good was $10 and a $4 tax was imposed,what is the tax income? What 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?
-Refer to Figure 16.1.Assume that the equation of Dx is P = 50 - 2Qd.
(A)If the original price of the good was $10 and a $4 tax was imposed,what is the tax income? What 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?

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