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please see attachment below 8. The diagram below shows the effect of a tax intended to reduce the consumption of butter. The before-tax equilibrium is

please see attachment below

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8. The diagram below shows the effect of a tax intended to reduce the consumption of butter. The before-tax equilibrium is at A = (2.0 kg, 45 kr) and the after-tax equilibrium is at B = (1.6 kg, 54 kr). The tax imposed is 10 kr per kg of butter. Which of the following statements is correct? 100 90 80 70 After tax Consumer surplus supply curve 60 Price, P (kr per kg) Tax A Supply curve 40 30 20 Demand curve 10 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Quantity of butter, Q (kg per person per year) A) The tax policy would be more effective if the supply curve were less elastic. B) The very elastic supply curve implies that the incidence of the tax falls mainly on firms. C) The loss of consumer surplus due to tax is 2. D) Total revenue per person raised by the tax is 16 kr/year

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