1. Understanding the implications of taxes on welfareThe following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-taxequilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.PRICE (Dollars per pinckney)7.005.003.00DemandABODEFSupply12QUANTITY (Pinckneys)? Complete the following table, given the information presented on the graph.ResultPrice producers receive before taxEquilibrium quantity after taxPer-unit tax$ValueIn the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply.ConceptA BFTax revenue after the tax is imposedProducer surplus before the tax is imposedConsumer surplus after the tax is imposedUсUDEU

A tax is a financial charge levied on an economic activity such as the production or consumption of…

1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenar PRICE (Dollars per pinckney) 7.00 5.00 3.00 Demand A B 00 DE F 8 Supply QUANTITY (Pinckneys) (?)

1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenar PRICE (Dollars per pinckney) 7.00 5.00 3.00 Demand A B 00 DE F 8 Supply QUANTITY (Pinckneys) (?)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for Pinckney (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per Pinckney)QUANTITY (Pinckney's)DemandSupplyABCDEF9.00187.0011.0014 Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity after tax Price consumers pay after-tax Per unit tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept A B C D E F Consumer surplus after the tax is imposed Producer surplus before the tax is imposed Tax revenue after the tax is imposed
20 10 -demand - uey with ta How much revenue will the government gain if they put a $6 tax on this product? Do not write the dollar symbol ($) because that confuses the computer. Write just a number. 16
point(s) possible Submit Next question The graph shows the market for basketballs, when sellers are taxed $6 a ball. Price (dollars per ball) 27 What is the excess burden of the tax? 25- Is the demand for basketballs or the supply of basketballs more inelastic? $+tax 23- 21- 19- Draw a shape that shows the excess burden of the tax on basketballs. 17+16 15 15- AS The excess burden of the tax on basketballs is $ million. 13- D The supply of basketballs is more than the demand for basketballs, and 11-T0 the pays most of the tax. SS 9- O A. inelastic; seller 7- 12 O B. inelastic; buyer 5+ 16 12 Quantity (millions of balls) 8. C. elastic; buyer D. elastic: seller >> Draw only the objects specified in the question. its O Time Remaining: 00:53:44 Next mpleted his course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e MacBook Pro O O O O
Refer to image. Suppose the government imposes a tax of $0.60 per soft drink purchased. The price paid by the consumer becomes A. $2.40 B. $2.00 C. $2.20 D. $2.60 E. $1.80
According to Graph 8-1, after the tax is levied, producer surplus is represented by area:
1. Consider the market for candy bars given below. Suppose that the government imposes a tax of $2 per candy bar in this market. Show on the graph and calculate the following: Price 5 $4.50 $4 $3.50 Supply 53 $2.50 $2 $1.50 $1 Demand S0.50 400 800 1200 1600 2000 2400 2800 3200 3600 4000 Candy Bars A. The quantity the market will produce with the tax. B. The government revenue from the tax. C. The deadweight loss from the tax. D. The consumer surplus with the tax. E. The producer surplus with the tax.
Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and S, is the supply curve after the tax. Price 18 12 10 10 12 Qua (a) For the market for cigarettes without the tax. Indicate: (1) Price paid by consumers (i) Price paid by producers (ii) Quantity of cigarettes sold (iv) Buyer's reservation price (v) Seller's reservation price
The market supply and demand for a product are shown in the diagram below. Now supose the government imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to the government? Explain. (ii) Will producer surplus increase, decrease, or stay the same? (iii) Will total surplus increase, decrease, or stay the same? Explain.
1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) Demand Supply A 56.00 40.00 B DE 24.00 F QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. Result Per-unit tax Value Price producers receive after tax Equilibrium quantity before tax (?) In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Producer surplus before the tax is imposed Deadweight loss after the tax is imposed Consumer surplus after the tax is imposed A B C D E F ☐ ☐ ☐
suppose that the local government of Columbus decides to institute a tax on seltzer consumers. Before the tax, 20,000 packs of seltzer were sold every week at a price of $10 per pack. After the tax, 15,000 packs of seltzer are sold every week; consumers pay $12 per pack (including the tax), and proceeds nrecieve $5 per pack.
Question 7 Read the following scenario and answer the questions that follow. Scenario 4 In the market for cigarettes the impact of a specific excise tax of R10,00 is depicted in the diagram below. D ST Тах E 55,40 50,00 45,40 E2 21,00 ST S 11,00 Q 50 120 150 200 Packets per week (thousands) In the absence of any excise tax, a packet of cigarettes cost R50,00 and the equilibrium quantity is 150 000 packets per week. For scenario 4, discuss the impact of a specific excise tax of R10,00 in the market for cigarettes with reference to the provided diagram. Your discussion should incorporate the change in price received by suppliers and paid by consumers owing to the imposition of the specific excise tax. 7.1. Price per packet (R)
ols 4. The Laffer curve Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections. To understand the effect of such a tax, consider the monthly market for champagne, which is shown on the following graph. 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, Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per case) 22***RES 40 35 Show Transcribed Text AX REVENUE (Dolan) 018 27 345 54 63 72 81 00 QUANTITY (Cases) Suppose the government imposes a $10-per-case tax on suppliers. At this tax amount, the equilibrium quantity of champagne is [ . 648 576 504 432 360 204 3214 144 72 D Supply . Demand Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per case. (Hint: To find the equilibrium quantity…