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17. (02.08 HC) A government imposes a $10 per-unit tax in a competitive market. Afterward, the seller's after-tax price falls from the original equilibrium price
17.
(02.08 HC) A government imposes a $10 per-unit tax in a competitive market. Afterward, the seller's after-tax price falls from the original equilibrium price of $20 to $18. Based on this, which of the following is true? (2 points)
Producers are bearing 100% of the tax burden. | |
The next after-tax equilibrium price will be $30. | |
Consumers are bearing 80% of the tax burden. | |
The government will collect less than $10 per unit exchanged of the good. | |
The quantity demanded will decrease by 10%. |
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