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D. How much revenue does the government earn from the tax???? This is a additional question 90 $90.00 80 Excise Tax (0 - $20) 0.00

D. How much revenue does the government earn from the tax???? This is a additional question

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90 $90.00 80 Excise Tax (0 - $20) 0.00 70 Demand 60 Perfectly Relatively 50 S Inelastic Elastic $50.00 Relatively Elastic 40 Supply 30 Less Perfectly 20 Elastic Elastic Perfectly Elastic D 10 CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000 Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 (this corresponds to a vertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and impose a $16.00 excise tax on buyers. a. What is the equilibrium price buyers pay directly to the sellers? $ b. After paying the tax, what is the total amount buyers pay per unit? $[ c. With the tax, what is the equilibrium quantity?units

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