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dont use chatgpt i want good answers Make sure to include graphs where you see possible (a) (b) Suppose in a competitive market, the market

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dont use chatgpt i want good answers

Make sure to include graphs where you see possible

image text in transcribed
(a) (b) Suppose in a competitive market, the market demand curve for salt is infinitely inelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the price of salt that consumers pay? [10 marks] Suppose the demand curve for butter is } = 50 3F and the supply curve is () = 2P. Suppose the government announces a per-unit tax of 1 on the price of butter. Tax on butter can be seen as a 'fat tax'. What is the overall effect of a fat tax on the consumers? [10 marks] If vou were a policymaker and wanted to promote a fat tax in the UK, what would you cover in vour policy campaign? [10 marks]

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