12-10-8-6-4-2-Price (dollars per smartphone charger)0+0S2D4681012Quantity (millions of smartphone chargers per year)>>> Draw only the objects specified in the question.Next The graph shows the market for smartphone chargers.Draw a point to show the price of a smartphone charger and the quantity bought and sold.Label it 1.The government imposes a tax of $4 per smartphone charger on buyers.Draw the D-tax curve and label it.Draw a point to show the price paid by buyers and the quantity bought and sold with thetax. Label it 2.Draw a point to indicate the price received by sellers and the quantity bought and sold withthe tax. Label it 3.The tax isO A. split between the buyers and sellers, and the sellers pay more than the buyersOB. paid by the sellers because if the price rises by the amount of the tax sellers willlose businessOC. split evenly between the buyers and sellersOD. paid by the buyers because it is imposed on the buyers by the government.

A tax is a mandatory expense or monetary charge levied by any administration on an individual or an…

Answered: 12- 10- 8- 6- 4- Price (dollars per…

12- 10- 8- 6- 4- Price (dollars per smartphone charger) 2- 0+ 0 S 2 D 4 6 8 10 12 Quantity (millions of smartphone chargers per year) >>> Draw only the objects specified in the question.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 16P

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EFFECT OF A TAX ON BUYERS AND SELLERS
Effect of a tax on buyers and sellers The following graph shows the daily market for jeans. Suppose the government institutes a tax of $10.15 per pair. This places a wedge between the price buyers pay and the price sellers receive. 0100200300400500600700800900100050454035302520151050PRICE (Dollars per pair)QUANTITY (Pairs of jeans)Tax WedgeDemandSupply Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive (Pairs of jeans) (Dollars per pair) (Dollars per pair) Before Tax After Tax Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden Elasticity…
The following graph shows the daily market for wine. Suppose the government institutes a tax of $23.20 per bottle. This places a wedge between the price buyers pay and the price sellers receive. Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. The burden of the tax falls more heavily on the ___ elastic side of the market.
Q Sea Aplia Homework: Elasticity of Demand and Supply The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) 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. Graph Input Tool 50 Market for Jeans 45 I Quantity (Pairs of jeans) 50 40 Supply Demand Price (Dollars per pair) Supply Price (Dollars per pair) 75.00 17.00 35 30 25 Supply…
Why type of good are the best choice for levying or applying an excise tax? A. Goods that are considered “luxury goods” (boats, fragrances, designer-label clothing) B. Goods that are relatively inexpensive C. Good with very few substitutes (I.e., tobacco, alcohol, pharmaceuticals) D. Goods that represent a large share of consumer income in their purchase. E. Good that have many substitutes available.
Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. a.Draw a supply and demand diagram of the market for beer without the tax.Show the price paid by consumers ,the price received by producers,and the quantity of beer sold.What is the difference between the price paid by consumers and the price received by the producers? b.Now draw a supply and demand diagram for the beer market with the tax.Show the price paid by consumers ,the price received by producers,and the quantity of beer sold.What is the difference between the price paid by consumers and the price received by the producers?Has the quantity of beer sold increased or decreased?
Imagine the government imposes a $30 excise tax on sellers of cell phones by charging $30 for each cell phone sold. If we have normal demand and supply curves, the price of cell phones will: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Rise by less than $30. b Rise by more than $30. Rise by exactly $30. d Buyers of cell phones will bear the entire burden of the tax. e Sellers of cell phones will bear the entire burden of the tax.
Does a tax increase or decrease the quantity of the taxed good that is consumed?
If the government wants to raise tax revenue, which of the following items are good candidates for an excise tax? Choose one or more: A. toilet paper B. automobile tires C. cigarettes D. sweet potatoes
Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. a. Draw a supply and demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by produers? b.Draw a supply and demand diagram for the beer market with the tax. Show the price paid by consumers, the price received by producers and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers? Has the quantity of beer sold increased or decreased? C. Can you identify and government revenues? d. Is there and inefficiency, and if so, can you define it and label it on the graph? e. If the producer has an inelastic supply curve, which market participant has the bigger tax brden? Explain.
How does a tax on a good affect the price paid by buyers, price receive by sellers, and the quantity sold?