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The graph below shows the market for tires. The curves labelled D and S represent the demand and supply curves respectively, before the government intervenes

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The graph below shows the market for tires. The curves labelled D and S represent the demand and supply curves respectively, before the government intervenes in the market. The curve S + tax occurs after the government implements a tax on sellers of tires. The graph shows that after the government imposes the tax, the total surplus in millions of dollars is Price (dollars per tire) S + tax 70 60 50 40 D 30 20 10 0 10 20 30 40 50 60 70 Quantity (millions of tires per month)

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