Chapter 4: Market Outcomes and Tax Incidence e Page 124 4.3. Why do taxes create

Question

Chapter 4: Market Outcomes and Tax Incidence e Page 124 4.3. Why do taxes create deadweight loss in otherwise efficient markets? Assume that the government places a tax on the buyers of televisions, and the demand curve decreases. What is the price without the tax, and what prices do the consumers pay and producers receive after the tax is imposed? Drag the labels to the corresponding dotted gray lines on the graph price without tax price buyer pays price seller receives* Drag each item above to its appropriate location in the image. Note that every item may not have a match, while some items may have more than one match.

Explanation / Answer

Do I have to just mark the respective prices paid or do you want a numerical answer?Because the demand and the supply equations are not available and neither are the points on the Y axis.

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