-The table gives the demand and supply schedules for fireworks on the Island of Big Bang. In the past, because many deaths have resulted from accidents involving fireworks, the government has banned fireworks and is enforcing the ban. A $6 a firework penalty on sellers of fireworks and no penalty on buyers will reduce the number of fireworks bought to ________ a week and increase the price paid by buyers to ________ a firework.

Question

Quizplus · Accepted Answer

A $6 penalty on sellers shifts the supply curve upwards by $6. The new equilibrium occurs where the demand curve intersects the new supply curve, which is at 80 fireworks and a price of $11.

-The Table Gives the Demand and Supply Schedules for Fireworks