2. The following graph shows the demand and supply for j-Pods. Price 100 80 60 40 20 0 0 80 160 240 Quantity of i-pods 320 D 400 a. What is equilibrium price and quantity? b. Suppose that a $20 per unit sales tax is placed on the product. What is the new equilibrium price and quantity? c. What proportion of the tax is paid by the consumer, and what proportion is paid by the seller in this case?
2. The following graph shows the demand and supply for j-Pods. Price 100 80 60 40 20 0 0 80 160 240 Quantity of i-pods 320 D 400 a. What is equilibrium price and quantity? b. Suppose that a $20 per unit sales tax is placed on the product. What is the new equilibrium price and quantity? c. What proportion of the tax is paid by the consumer, and what proportion is paid by the seller in this case?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2. The following graph shows the demand and supply for i-Pods.
Price
100
80
60
40
20
0
0
80
160 240
Quantity of i-pods
320
is
D
400
a. What is equilibrium price and quantity?
b. Suppose that a $20 per unit sales tax is placed on the product. What is the new
equilibrium price and quantity?
c. What proportion of the tax is paid by the consumer, and what proportion is paid by the
seller in this case?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8eb7d608-8711-4c47-ad3d-24252649afd6%2Fbb9eee62-782b-422f-b055-bd1f6ba935d7%2F8qvpra_processed.png&w=3840&q=75)
Transcribed Image Text:2. The following graph shows the demand and supply for i-Pods.
Price
100
80
60
40
20
0
0
80
160 240
Quantity of i-pods
320
is
D
400
a. What is equilibrium price and quantity?
b. Suppose that a $20 per unit sales tax is placed on the product. What is the new
equilibrium price and quantity?
c. What proportion of the tax is paid by the consumer, and what proportion is paid by the
seller in this case?
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