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Use the graph below to answer the questions that follow. } 5.30 5.60 4.50 ++ H A B B sh .S 0 8 ADR
Use the graph below to answer the questions that follow. } 5.30 5.60 4.50 ++ H A B B sh .S 0 8 ADR a. A tax has been placed on the consumer and the demand curve shifts to the left. What three negative effects does this have on the market? Explain. b. How has consumer and producer surplus changed as a result of the tax on the consumer? Explain. c. What areas represent government surplus? d. What areas represent deadweight loss and explain why there is a deadweight loss.
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
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