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Author Question: FIGURE 4-4Refer to Figure 4-4. There have been proposals that a tax be imposed on sugar-laden soft ... (Read 23 times)

urmomsucks

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FIGURE 4-4

Refer to Figure 4-4. There have been proposals that a tax be imposed on sugar-laden soft drinks in an attempt to reduce their consumption. Assume for simplicity that all bottled soft drinks are the same size. Suppose the initial market equilibrium is P = $2.00 and Q = 1000. Suppose the government imposes a tax of $0.60 per soft-drink purchased. The after-tax price received by the seller becomes


◦ $2.60.
◦ $2.00.
◦ $1.80.
◦ $2.40.
◦ $2.20.


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Marked as best answer by urmomsucks on Oct 12, 2022

annaelena92

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urmomsucks

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Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review


jojobee318

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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