Answer to Question #18957 in Microeconomics for achal
a.) calculate her consumer surplus
b.) if a tax of $60 is imposed on the cost, wht will be the consumer surplus after tax?
c.) wht size of tax will prevent Sara from having her apatment?
b) consumer surplus = $500-$400-$60 = $40
c) if tax is more than $100 Sara shouldn't having her apartment pained,
because she won't get consumer surplus
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