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Please answer the following questions What are the equilibrium price and quantity of hamburgers per week in this figure below? If the market is originally
Please answer the following questions
- What are the equilibrium price and quantity of hamburgers per week in this figure below?
- If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of hamburgers, what happens in the graph?What is the new equilibrium of hamburgers per week? What is the incidence of the tax, i.e., consumers will pay how much of the tax on hamburgers and producers will pay how much of the tax on hamburgers per week?
- What are the tax revenue and deadweight loss of this excise?Be sure to explain what deadweight loss is and how it arises with a tax.
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