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The data in the table below are for kilos of prawns. Price Quantity Demanded Quantity Supplied (before tax) Quantity Supplied (after tax) $21 255 195
The data in the table below are for kilos of prawns.
Price | Quantity Demanded | Quantity Supplied (before tax) | Quantity Supplied (after tax) |
$21 | 255 | 195 | |
23 | 235 | 205 | |
25 | 215 | 215 | |
27 | 195 | 225 | |
29 | 175 | 235 | |
31 | 155 | 245 | |
33 | 135 | 255 |
a) What is the present equilibrium price and quantity?
Equilibrium price: $..........Equilibrium quantity:......................
Suppose that the government introduces a $6 excise tax on prawns.
b) Complete the Quantity Supplied (after tax) that results.
c) What will be the new equilibrium price and quantity?
New equilibrium price: $........ New equilibrium quantity:..........
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