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Author Question: Efficiency of TaxationThe graph shows the demand (D) and supply (S) for the oil market. Assume that ... (Read 268 times)

tyratatyanna

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Efficiency of Taxation

The graph shows the demand (D) and supply (S) for the oil market.
 
Assume that A=235, B=175, C=100, D=25, E=30, and F=135. What is the excess burden of a government imposed tax equal to (P4-P2)? Suppose this market suffers from a negative externality and the amount of the tax equals the marginal external cost of the externality. What is the excess burden of the tax?
◦ $130, $130
◦ $330, $330
◦ $130, $0
◦ $330, $130


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Marked as best answer by tyratatyanna on Nov 23, 2022

fdsajkl

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tyratatyanna

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Reply 2 on: Nov 23, 2022
Wow, this really help


tranoy

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Reply 3 on: Yesterday
Excellent

 

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