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Suppose the market for soft drinks is given by: Demand: P = 148 - 0.5Q Supply: P = 1.40 The government wants to discourage unhealthy
Suppose the market for soft drinks is given by: Demand: P = 148 - 0.5Q Supply: P = 1.40 The government wants to discourage unhealthy eating habits and so imposes a tax that reduces the market equilibrium quantity by 8. How much of the tax revenue generated was previously captured by producers at equilibrium? a. $140.00 b. $179.20 c. $782.82 d. $67.20
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