ECON 101 Lecture Notes - Lecture 1: Bubble Tea, Demand Curve
Document Summary
Per unit on t for each bubble tea they sell every t. Suppose the a imposes t all bubble tea sold the tax is levied on suppliers firms must pay the govt. This acts like an increase in marginal cost of quantity produced tax of amount of tax a x g. Perunit taxes on consumers on when we levy the tax price t. The demand then a tax of curve represents including taxes that. So when we levy the their demand pre tax market in unit demanders consum they pay the t per addition the in consumers tax down by t are willing to pay consumers they on final all or price shift. The pre tax demand curve determines equilibrium is virtually to case in. Consumers pay same other price as in is levied on that case a relieve suppliers some price.