The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy, determine the price paid by consumers, the price received by firms, and the number of new cars sold. Finally, determine what share of the tax is paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax.
The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy, determine the price paid by consumers, the price received by firms, and the number of new cars sold. Finally, determine what share of the tax is paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 5CQQ: An increase in the supply of a good will decrease the total revenue producers receive if a. the...
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The alternative policy is to introduce a tax of $3,000 on the sale of new
cars. Under this policy, determine the price paid by consumers, the price received by
firms, and the number of new cars sold. Finally, determine what share of the tax is
paid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax.
Full explain this question and text typing work only thanks
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