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: Consider the following information for the next 3 questions. Suppose a per-unit tax of 2 is levied on consumers of good X. Pre-tax demand
:Consider the following information for the next 3 questions. Suppose a per-unit tax of 2 is levied on consumers of good X.
Pre-tax demand and supply curves are respectively given by: P = 12 -1/2*Q and P = 4 + 3/2*Q After the 2 per unit tax is imposed the price consumers pay for good X is:
Q9: The revenue collected by the tax authority from this per-unit tax is:
Q10: The total loss in (consumer + producer) surplus is equal to:
explanation with graph
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