| 0 YouTube E NBA Basketball scc -problern sets-201 Econ201-Fall2C × 22:30 Brook
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| 0 YouTube E NBA Basketball scc -problern sets-201 Econ201-Fall2C × 22:30 Brooklyn Net dj Watch Brookly e chegg study! Guic + v O t-content-rid-401523051/courses 201 7FAL ECON201S08 CLAS 14902 NEU Ball State University us blackboard. suedu/bbcswebdav pid-6315818- To see favorites here, select * then , and drag to the Favorites Bar folder. Or import from another browser. Import favorites Question 2: Application: The Cost of Taxation (10 points total) See figure below to answer all the questions The vertical distance between points A and B represents a tax in the market. Price 12 10 iB Demand 05 1 15 2 25 3 3545 5 Danit Please circle your answer and write on the yellow cells wherever applicable. All questions are worth point each (except f, h, k and l, which is worth 1 point each). a. At market equilibrium without taxes: i. The equilibrium price is ii. The equilibrium quantity isunits Type here to search 11/4/2017Explanation / Answer
a) i) Equilibrium price is $ 6
ii) Equilibrium quantity is 2 units
b) Tax =9 - 4 = $ 5
c) i) Decrease
ii) 1 unit
d) i) Increase
ii) New price = $ 9
iii) Tax on buyers = 9 - 6 = $ 3
e) i) decrease
ii) New price = $ 4
iii) Burden on sellers = 6 - 4 = $ 2
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