Generates tax revenue of 1220 per day and decreases the
A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day.
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a tax of 025 is imposed on each bag of potato chips that is sold the tax decreases producer surplus by 600 per day
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