Business, 06.03.2020 23:51 tjames30

A study finds that the noise from lawn mowers is harmful; hence, the government imposes a $20 tax on the sale of every unit. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, basic push mowers regularly sold for $190. After the tax is in place, the market price for basic push mowers rises to $208.

Because of the tax, the number of basic push mowers sold will Increase or Decrease?

The socially optimal price of basic push mowers is $???

The private market price is $???

A firm selling basic push mowers receives $??? after it pays the tax.

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