English, asked by anujkumawat1947, 4 months ago

Explain decrease in excise tax through supply curves.

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Answered by Anonymous
1

Answer:

If excise tax is imposed on the producer, the supplier will provide less quantity of Good A. ... It is also the amount the supply curve shifts from S0 to S1. The area falling under the demand curve and above the supply curve between Q1 and Q0 is considered the deadweight loss.

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