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how to do this AS economics question?

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The table shows the demand and supply schedules for a good before and after the imposition of
a tax.
price
($)
quantity
demanded
quantity supplied
before tax
quantity supplied
after tax
20 340 440 380
19 340 430 340
18 340 410 290
17 340 380 230
16 340 340 160
15 340 290 80
14 340 230 0
What was the amount of the tax?
A $1 B $2 C $3 D $4
 
Messages
8
Reaction score
1
Points
3
The table shows the demand and supply schedules for a good before and after the imposition of
a tax.
price ($) quantity demanded quantity supplied before tax quantity supplied after tax
20 340 440 380
19 340 430 340
18 340 410 290
17 340 380 230
16 340 340 160
15 340 290 80
14 340 230 0
What was the amount of the tax?
A $1 B $2 C $3 D $4
 
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21
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6
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Okay... Carefully look at the figures and find out the equilibrium price before taxation. It is 16 because at 16 (QD=QS=340) is the quantity demanded as well as supplied. Now find a equilibrium price after taxation. Keep in mind this means that QD before tax and QS after tax must be equal in order to pertain Equilibrium price. The new equilibrium after tax is 19 because 340=340. This means that price before tax was 16 and price after tax is 19 then an increase of 3$ had been casted. Hence 3$ is the tax amount. Hope that helped. Sorry for not reading the query sooner.
 
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