Suppose the market for soft drinks is given by: Demand: P = 181 - 1.7Q Supply: P = 1.3Q The government wants to discourage unhealthy eating habits and so imposes a tax that reduces the market equilibrium quantity by 11. How much of the tax revenue generated was previously captured by producers at equilibrium?

Suppose the market for soft drinks is given by: Demand: P = 181 - 1.7Q Supply: P = 1.3Q The government wants to discourage unhealthy eating habits and so imposes a tax that reduces the market equilibrium quantity by 11. How much of the tax revenue generated was previously captured by producers at equilibrium?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 10PA

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