28 24 20 16 12 8 4 0 P 0 4 8 12 O a) $6, buyers Ob) $6, sellers M O c) $48, buyers d) $48, sellers 16 20 S D 15. Based on this graph, depicting the imposition of a $6 per unit sales tax on a good, how much total revenue does the government collect, and who bears more of the economic burden of this tax - buyers or sellers? 24 Q

28 24 20 16 12 8 4 0 P 0 4 8 12 O a) $6, buyers Ob) $6, sellers M O c) $48, buyers d) $48, sellers 16 20 S D 15. Based on this graph, depicting the imposition of a $6 per unit sales tax on a good, how much total revenue does the government collect, and who bears more of the economic burden of this tax - buyers or sellers? 24 Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5
Price (per ton) $60 50 20 60 70 Quantity (millions of tons) Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S 2. Which of the following states the actual burden of the tax? O $10 for buyers and $30 for sellers $30 for buyers and $10 for sellers $2 The entire $40 falls on sellers. The entire $40 falls on buyers.
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5. Calculating tax incidence Suppose that the local government of Raleigh decides to institute a tax on soda producers. Before the tax, 25 million liters of soda were sold every month at a price of $11 per liter. After the tax, 19 million liters of soda are sold every month; consumers pay $16 per liter, and producers receive $7 per liter (after paying the tax). The amount of the tax on a liter of soda is 3 that falls on producers is 5 per liter. O True per liter. Of this amount, the burden that falls on consumers is True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on consumers. False per liter, and the burden
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1) Describe in detail how taxes impact consumer and producer surplus. In your discussion, also show graphically, the before and after-tax impact.
Figure 8-2 The vertical distance between points A and B represents a tax in the market. 12 11 10 9 8 7 4 3 2 1 个 Price A 05 1 15 2 25 3 35 4 45 5 a) $4. O b) $3. O d) Refer to Figure 8-2. The loss of producer surplus as a result of the tax is Supply $2. Demand $1. Quantity
QUESTION 10 Using the attached table, once the tax is implemented, the tax revenue will be be Quantity MB 520 525 530 535 540 545 550 164 160 156 152 148 144 140 136 MC 80 90 100 110 120 130 140 555 150 Note: MB designates the marginal benefit and reflects the values on the demand curve. MC is the marginal cost and designates the values on the supply curve. O $18,375, $1,750 $70, $35 O $36,750, $875 O $525, $1,750 MB-Tax (Amount producer receives) 94 90 86 and the deadweight loss will 82 78 74 70 66
Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080-7P --120+3P Suppose now that government iniposes S60 tax per unit of output on sellars. What is the tax revenue for the govemment at the equilibrium? 7200 7320 6840 6000
QUESTION 23 Refer to the graph below for a market. ↑Price 48 Supply 44 40 36 32 28 24 20 16 12- 8 4 Demand ++++ Quantity 10 15 20 25 30 35 40 45 50 55 60 Assuming that the government imposes a tax size of AB in the above market, Based on that calculate 1. Consumer surplus after taxes 2. Producer surplus after taxes 3. Tax revenue after taxes 4. Deadweight loss if any after taxes Note: Make sure to calculate the exact dollar amount with the steps. T T T F Paragraph 只i8公 Arial 3 (12pt) O f • Mashups HOO HTML CSS Click Save and Submit to save and submit. Click Save All Answers to save all answers.
11.00 Ob. 1/5 Oc 1/3 O d. 3/4 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 300 600 900 1200 1500 2100 1800 Supply Demand 2400 Suppose that a $3 tax was imposed on the market above, what is the consumer tax-incidence? a. 2/3