The graphs show the market for bags of potato chips, which is currently at an equilibrium price of $ 1.33 per bag and an equilib
rium quantity of 5.33 million bags . Suppose that, in an attempt to lower blood pressure and reduce healthcare costs, the government imposes a $ 1.00 excise (or commodity) tax on potato chips. Suppose the government levies this tax on manufacturers for each bag of potato chips they produce. Please shift the appropriate curve or curves to illustrate this.
1 answer:
You might be interested in
Answer:
$4.48
Explanation:
If Shannon needs to make a 12% markup based on cost, to obtain her minimum selling price to her distributor Miller of Denton, simply multiply the production cost per unit by 100% plus the desired markup.
If it costs her $4.00 to produce a six pack, her selling price should be:
She should charge $4.48 per six pack.