Governments often place so-called sin taxes on goods-service

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Reference no: EM13887739

Governments often place so-called sin taxes on goods or services such as cigarettes, alcohol, and pornography. These kinds of taxes are popular with politicians because they are usually more palatable to voters than income taxes.

To understand the effect of such a tax, consider the monthly market for adult DVDs, which is shown on the following graph. Suppose the initial tax on suppliers is set at zero dollars per DVD.

Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.

Reference no: EM13887739

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