part C D E 2. Using the following graph, answer the following questions. Also, show/Label your answersfor parts a-e on the graph as well.Price2018161412106.4 6 8 10 12 14 16 Quantity2a. Suppose a $4 per-unit tax is imposed on the sellers of this good. What price will buyers payfor the good after the tax is imposed?b. Suppose a $4 per-unit tax is imposed on the sellers of this good. How much is the burden ofthis tax on the buyers in this market? c. Suppose a $4 per-unit tax is imposed on the sellers of this good. What is the effective pricethat sellers will receive for the good after the tax is imposed?d. Suppose a $4 per-unit tax is imposed on the sellers of this good. How much is the burden ofthis tax on the sellers in this market?e. Suppose a $4 per-unit tax is imposed on the sellers of this good. How many units of this goodwill be sold after the tax is imposed?

As $4 tax is imposed on seller and demand and supply curves are unitary elastic then half of tax…

Answered: 2. Using the following graph, answer…

2. Using the following graph, answer the following questions. Also, show/Label your answers for parts a-e on the graph as well. Price 20 18 S 16 14 12 10 6 4. 2 6 8 10 12 14 16 Quantity 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

part C D E

c. Suppose a $4 per-unit tax is imposed on the sellers of this good. What is the effective price
that sellers will receive for the good after the tax is imposed?
d. Suppose a $4 per-unit tax is imposed on the sellers of this good. How much is the burden of
this tax on the sellers in this market?
e. Suppose a $4 per-unit tax is imposed on the sellers of this good. How many units of this good
will be sold after the tax is imposed?

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