Question
What is the government's profit (the tax collection) from the sale of a certain service that has demand and supply as shown in the figure?
What is the government's profit (the tax collection) from the sale of a certain service that has demand and supply as shown in the figure?
A tax is imposed on producers which increases prices and decreases quantity.
The shorter supply line shows supply without tax.
Use at least three significant characters
P3 = 33 P1 = 15 P2 = 42 Q3 = 67 tax = 4
P2 Skattur P3 P1 Q3
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Economics
Authors: Gregory Mankiw, Mark P. Taylor
5th Edition
1473768543, 978-1473768543
