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Business, 01.10.2019 21:00 amanquen35

Suppose the government is attempting to cut down caffeine consumption by imposing a tax of $1 per cappuccino on consumers. assume that there are no administrative costs from the tax and that consumers or producers that are indifferent will trade. without the excise tax, what are the equilibrium quantity and price? equilibrium quantity: 4 cappuccinos equilibrium price: $ 2 with the excise tax, what are the equilibrium quantity and the price that will be paid to producers? new equilibrium quantity: 2 cappuccinos price paid to producers: $ 3 what is the deadweight loss from the imposition of this excise tax? deadweight loss: $ .5

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