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Which answer(s) are correct and what is the reasoning? The following represents demand and supply curves in the market for secondhand customised nerf guns, where
Which answer(s) are correct and what is the reasoning?
The following represents demand and supply curves in the market for secondhand customised nerf guns, where the government imposes a tax of 15 per gun sold. - Demand curve - -- Supply curve -=1=1=*= Supply curve + tax 140 - 135- 130- 125 - 120 - 115 - 110 - 105 - 100 - 95 - 90 - 85 - 80 - 75 - Price 65 - 60 - 55 - 50 - 45 - 25 - 20 - 15 - 10 - 2.5 7.5 10 12.5 15 17.5 22.5 25 30 32.5 37.5 Quantity Q 27.5 35 Which of the following statements are correct? O a. Sellers' after-tax revenue is 80 per unit sold. O b. The quantity traded is not the Pareto efficient quantity O c. Buyers pay 70 per unit purchased. d. The tax has no deadweight loss since demand is inelastic. O e. Tax revenue is 15 * 30 = 450. O f. Buyers pay 80 per unit purchasedStep by Step Solution
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