The supply of headphones is linear and upward sloping, and the demand for headphones is linear and downward sloping. Suppose the government imposes a per-unit tax in the market for headphones. In this market, the tax decreases consumer surplus by $5,200.00, and it decreases producer surplus by $2,800.00. The tax decreased the equilibrium quantity of the good by 1,200.00 headphones, and it generated a deadweight loss of $2,400.00. The tax revenue generated by this tax is $ Part 2 The per-unit tax in the market for headphones must be $ Part 3 With the tax in place, the total number of headphones traded in the market is headphones.

The supply of headphones is linear and upward sloping, and the demand for headphones is linear and downward sloping. Suppose the government imposes a per-unit tax in the market for headphones. In this market, the tax decreases consumer surplus by $5,200.00, and it decreases producer surplus by $2,800.00. The tax decreased the equilibrium quantity of the good by 1,200.00 headphones, and it generated a deadweight loss of $2,400.00. The tax revenue generated by this tax is $ Part 2 The per-unit tax in the market for headphones must be $ Part 3 With the tax in place, the total number of headphones traded in the market is headphones.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 10PA

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