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Exhibit 19-2 Refer to Exhibit 19-2. The market for good x is initially in equilibrium at $5 . The government then places a per-unit tax

Exhibit 19-2\ Refer to Exhibit 19-2. The market for good

x

is initially in equilibrium at

$5

. The government then places a per-unit tax on good

x

, as shown by the shift of

S_(1)

to

S_(2)

. As a result,\ a. consumers end up paying

$6.25

per unit, and producers end up receiving and keeping

$4.00

per unit.\ b. consumers end up paying

$5.00

per unit, and producers end up receiving and keeping

$5.00

per unit.\ c. consumers end up paying

$6.25

per unit, and producers end up receiving

$5.00

per unit, but keeping only

$4.00

per unit.\ d. consumers end up paying

$6.25

per unit, and producers end up receiving

$6.25

per unit, but keeping only

$4.00

per unit.

image text in transcribed
Exhibit 19-2 Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S1 to S2. As a result, a. consumers end up paying $6.25 per unit, and producers end up receiving and keeping $4.00 per unit. b. consumers end up paying $5.00 per unit, and producers end up receiving and keeping $5.00 per unit. c. consumers end up paying $6.25 per unit, and producers end up receiving $5.00 per unit, but keeping only $4.00 per unit. d. consumers end up paying $6.25 per unit, and producers end up receiving $6.25 per unit, but keeping only $4.00 per unit

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