How to draw an excise tax, or per unit tax, on a graph
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How to draw an excise tax, or per unit tax, on a graph
Assume that sugar-based soft drinks are produced in a market shown on the graph above. Answer the following questions based on the information given in the graph. (a) To reduce the consumption of sugary soft drinks, suppose the government imposes a $2 per-unit sales tax on soft drinks.
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