Price (dollars per case) $33.25 27 22 20 0 Tax 50 90 Supply with tax Supply Demand Quantity (thousands of cases) The figure shows the market for beer. The government plans to impose a per-unit tax in this market. How much is the excess burden?

Price (dollars per case) $33.25 27 22 20 0 Tax 50 90 Supply with tax Supply Demand Quantity (thousands of cases) The figure shows the market for beer. The government plans to impose a per-unit tax in this market. How much is the excess burden?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 8P

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Question

Price
(dollars
per case)
$33.25
27
22
20
Tax
50
90
Supply
with tax
Supply
Demand
Quantity
(thousands of cases)
The figure shows the market for beer. The government plans to impose a per-unit
tax in this market. How much is the excess burden?

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