-Refer to Figure 16.1.Assume that the equation of D_x is P = 50 - 2Q_d.
(A)If the original price of the good was $10 and a $4 tax was imposed,what is the tax income? What is the excess burden?
(B)How much marginal excess burden will be created if an additional dollar of tax is levied?
(C)How much additional tax is collected?

Question

-Refer to Figure 16.1.Assume that the equation of D<sub>x</sub> is P = 50 - 2Q<sub>d</sub>. (A)If the original price of the good was $10 and a $4 tax was imposed,what is the tax income? What is the excess burden? (B)How much marginal excess burden will be created if an additional dollar of tax is levied? (C)How much additional tax is collected?

Quizplus · Accepted Answer

The Answer of -Refer to Figure 16.1.Assume that the equation of D_x is P = 50 - 2Q_d. (A)If the original price of the good was $10 and a $4 tax was imposed,what is the tax income? What is the excess burden? ( B)How much marginal excess burden will be created if an additional dollar of tax is levied? ( C)How much additional tax is collected?