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Suppose a tax of $3- per unit is imposed on a good. The supply curve is a typical upwardsloping straight line, and the demand cun'e
Suppose a tax of $3- per unit is imposed on a good. The supply curve is a typical upwardsloping straight line, and the demand cun'e is a typical domwardsloping straight line. The tax decreases consumer surplus by $3,900 and decreases producer surplus by $3,000. The tax generates tax revenue of $6,000. The tax decreased the equilibrium qlmtity of the good from O A.2,000101,500. O B. 3000 m 2,400. 0 (12,600 to 2,000. O D. 2,400 to 2,000. The vertical distance between points A and B represents a tax in the market. T Price 22 * 20 + 18 + 16 +. Supply 14 12 + 10 + 8 - 6 - 2 Demand 100 200 300 400 500 600 700 800 900 1000 Quantity Refer to Figure S-6. The amount of the tax on each unit of the good is O A. $6. O B. $8. O C. $10. O D. $12
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