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Before there were no taxes on towels. The price of a towel was $8 and the quantity purchased was 300 towels. Then the government imposed
Before there were no taxes on towels. The price of a towel was $8 and the quantity purchased was 300 towels. Then the government imposed a tax of $2 per towel. As a result, the price of towels for the consumer rose to $9.50 and only 280 towels were purchased. How much income is obtained? How much consumer surplus is lost? How much producer surplus is lost? Approximate deadweight loss.
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An Introduction to Management Science Quantitative Approach to Decision Making
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
15th edition
978-1337406529
