Suppose a tax of $3 is imposed on each new garden hose that is sold, resulting in a deadweight loss of $22,500. the supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. before the tax was imposed, the equilibrium quantity of garden hoses was 100,000. we can conclude that the equilibrium quantity of garden hoses after the tax is imposed is
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Ответ:
Equilibrium quantity of garden hoses after the tax is imposed is 85000.
Explanation:
Given that,
Dead weight Loss = $22500
Tax amount per unit (t) = $3
Equilibrium quantity before tax,
= 1,00,000 units
Equilibrium quantity after tax,
= ?
Dead weight Loss =![\frac{1}{2} \times t \times (Q_{b} - Q_{a})](/tpl/images/0120/3435/ea535.png)
22500 = 0.5 × 3 × (100000 -
)
∴ Equilibrium quantity of garden hoses after the tax is imposed is 85000.
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Step-by-step explanation:
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