The market shown in Figure 6P-5 is in equilibrium. Suppose there is a $15 per unit tax

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The market shown in Figure 6P-5 is in equilibrium. Suppose there is a $15 per unit tax levied on sellers.

a. Draw the after-tax supply curve.

b. Plot the after-tax price paid by consumers and the after-tax price paid by sellers.


Figure 6P-5:

Price ($) 70 65 60 55 50 45 40 35 30 25 20 15 10 5. 100 120 140 160 180 200 20 40 60 80 Quantity

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Microeconomics

ISBN: 978-1259813337

2nd edition

Authors: Dean S. Karlan, Jonathan J. Morduch

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