Suppose the Canadian government places an excise tax of \( \$ 20\) per tire on...
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Economics
Suppose the Canadian government places an excise tax of \( \$ 20\) per tire on producers of automobile tires. Previously, there wasno excise tax on automobile tires. As a result of the tax, tireproducers, such as Bridgestone and Michelin, alter their tireprices. The graph shows the demand and supply curves for automobiletires before the excise tax. Shift the appropriate curve or curvesto demonstrate the impact of the new tax. What price do consumerspay for tires after imposition of the tax?
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