-The above figure shows the market for gourmet ice cream.In effort to reduce obesity,government places a $2 tax per gallon on suppliers in this market,shifting the supply curve from S0 to S1.The quantity of ice cream consumed before the tax is ________ gallons and the quantity consumed after the tax is ________ gallons.

Question

Quizplus · Accepted Answer

Before the tax, the quantity consumed is where the original supply curve S0 intersects the demand curve, which is 250,000 gallons. After the tax, the new supply curve S1 intersects the demand curve at 200,000 gallons.

-The Above Figure Shows the Market for Gourmet Ice Cream