Refer to the figure below. Assume that the equation of Dx is P = 50 - 2Xd.
(A)If the original price of the good was $10 and a $4 tax was imposed, what is the tax income? Wha 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 the figure below. Assume that the equation of Dx is P = 50 - 2Xd.
  (A)If the original price of the good was $10 and a $4 tax was imposed, what is the tax income? Wha 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 the figure below. Assume that the equation of Dx is P = 50 - 2Xd.
  (A)If the original price of the good was $10 and a $4 tax was imposed, what is the tax income? Wha 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?

Refer to the Figure Below