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Figure: The Market for Yachts
-(Figure: The Market for Yachts) Look at the figure The Market for Yachts. A price _____ of _____ will bring the about the same price and output in the market for yachts as would an excise tax of $60,000.

Question

Use the following to answer questions:
Figure: The Market for Yachts 
-(Figure: The Market for Yachts) Look at the figure The Market for Yachts. A price _____ of _____ will bring the about the same price and output in the market for yachts as would an excise tax of $60,000.

Quizplus · Accepted Answer

A price floor of $160,000 would increase the price by $60,000 above the equilibrium, similar to the effect of an excise tax of $60,000, leading to the same price and output changes in the market for yachts.

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