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The Market: SUVs (sports utility vehicles) The Market price: $50,000. The Scenario: A tax of $2,000 is placed on the producers of each new SUV
The Market: SUVs (sports utility vehicles) The Market price: $50,000. The Scenario: A tax of $2,000 is placed on the producers of each new SUV produced because they block visibility for others on the freeway. Assume a standard upward-sloping supply and downward-sloping demand in this market. What price for consumers do you expect after this tax of $2,000 is placed on SUV producers in this market
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
3rd Edition
1319105564, 978-1319105563
