Problem
As part of its national "Get-Fit" program, the government instituted a doughnut tax to be paid by doughnut producers. Before the tax, 6000 doughnuts were sold each month at a price of $1.50 per doughnut. tax, 5600 doughnuts are being sold every month. Consumers pay $2.00 a doughnut and producers receive $1.40 a doughnut.
a. In a properly labelled demand/supply diagram, illustrate the impact of this seller tax on the doughnut market.
b. What is the amount of the tax?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.