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Economics A Level

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Question:

How can you show the Total Tax in a Supply Demand Diagram - Use an Ad valorem Tax to Explain

Author: go kys



Answer:

-The Supply Curve will firstly Shift to the Left that is Non-Parallel to the OG Supply Curve [S1] -Total Tax can be Deduced from these Points. The New Equilibrium Point, The Equilibrium Price, A Point that is at the Same Quantity Demanded [Supplied] as the New Equilibrium Point, but is Located on the Old Supply Curve, and Finally the New Price for the Last Point just Mentioned. That should give the Total Tax


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-The Supply Curve will firstly Shift to the Left that is Non-Parallel to the OG Supply Curve [S1]
-Total Tax can be Deduced from these Points. The New Equilibrium Point, The Equilibrium Price, A Point that is at the Same Quantity Demanded [Supplied] as the New Equilibrium Point, but is Located on the Old Supply Curve, and Finally the New Price for the Last Point just Mentioned. That should give the Total Tax
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go kys
go kys