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Suppose the government imposes a $1 tax on each gallon of milk to raise money for childrens' health programs. The market for milk is illustrated in...

Suppose the government imposes a $1 tax on each gallon of milk to raise money for childrens' health programs. The market for milk is illustrated in the diagram below. How much milk is sold after the tax is imposed?


Econ 2.png

Econ 2.png

Top Answer

With the imposition of tax the price will increase and high price large quantity of... View the full answer

2 comments
  • Thank you!
    • sisnaz
    • Apr 04, 2018 at 11:23pm
  • Turns out the right answer is 60 million gallons. Thanks anyway.
    • sisnaz
    • Apr 05, 2018 at 3:00pm

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