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5. Refer to the following table. P Qd Qs 1 6 10 60 5 20 1 4 25 40 6 3 30 30 2 50 20 1 60 10 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = 3 30 a. 35 40 451 b. C. d. e. f. g. h. i. 6. Refer to the following table. P Qd Qs 25 20 120 80 25 100 80 - 30 80 80 35 75 80 60 80 50 40 New price for supply after imposing $3 tax z New price for supply after imposing $5 tax ✓

5. Refer to the following table. P Qd Qs 1 6 10 60 5 20 1 4 25 40 6 3 30 30 2 50 20 1 60 10 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = 3 30 a. 35 40 451 b. C. d. e. f. g. h. i. 6. Refer to the following table. P Qd Qs 25 20 120 80 25 100 80 - 30 80 80 35 75 80 60 80 50 40 New price for supply after imposing $3 tax z New price for supply after imposing $5 tax ✓

ENGR.ECONOMIC ANALYSIS
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. Refer to the following table. P Qd Qs 9 6 10 60 5 ४ 20 50 1 4 25 40 6 3 30 30 2 50 20 1 60 10 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = 5 4 a. b. C. d. e. f. g. h. i. 6. Refer to the following table. P Qd Qs New price for supply after imposing $5 tax 25 20 120 80 25 100 80 T 30 80 80 V 35 75 80 40 60 80 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = 30 35 40 45 New price for supply after imposing $3 tax 7 a. b. C. d. e. f. h. i.
Transcribed Image Text:5. Refer to the following table. P Qd Qs 9 6 10 60 5 ४ 20 50 1 4 25 40 6 3 30 30 2 50 20 1 60 10 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = 5 4 a. b. C. d. e. f. g. h. i. 6. Refer to the following table. P Qd Qs New price for supply after imposing $5 tax 25 20 120 80 25 100 80 T 30 80 80 V 35 75 80 40 60 80 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = 30 35 40 45 New price for supply after imposing $3 tax 7 a. b. C. d. e. f. h. i.
Distribution of Tax Burden Consumer burden (per unit) - consumers originally paid P1 now they have to pay P2 = $(25-23) = $2 Consumer burden (total) = each unit they pay $2 more and now they bought 50 units = $250 $100 Producer burden (per unit) - a $4 tax, consumers paid $2, so producers pay the remaining $2 Producer burden (total) = each unit they pay $2 and now they sold 50 units = $2* 50 = $100 2. Refer to the following table. P Qd Qs 14 10 9,000 5,000 15 11 8,000 6,000 16 12 7,000 7,000 13 6,000 8,000 14 5,000 9,000 15 4,000 10,000 16 3,000 11,000 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = (velutic Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = ナ 17 19 19 20 a. b. C. d. e. f. g. h. i. Ratio of Tax Burden Method 1: A $4 tax, consumers paid $2 producers also paid $2, CB ($2): PB ($2) = 1:1 Method 2 Consumer burden = $100 Producer burden = $100 CB ($100): PB ($100) = 1:1 Ed vs. Es As CB = PB, so Ed = Es (if CB > PB → Ed < Es; CB < PB → Ed > Es) New price for supply after imposing $4 tax
Transcribed Image Text:Distribution of Tax Burden Consumer burden (per unit) - consumers originally paid P1 now they have to pay P2 = $(25-23) = $2 Consumer burden (total) = each unit they pay $2 more and now they bought 50 units = $250 $100 Producer burden (per unit) - a $4 tax, consumers paid $2, so producers pay the remaining $2 Producer burden (total) = each unit they pay $2 and now they sold 50 units = $2* 50 = $100 2. Refer to the following table. P Qd Qs 14 10 9,000 5,000 15 11 8,000 6,000 16 12 7,000 7,000 13 6,000 8,000 14 5,000 9,000 15 4,000 10,000 16 3,000 11,000 Original equilibrium P and Q = New equilibrium P and Q = Tax expenditure / revenue = New TR (tax inclusive) = New TR (tax exclusive) = Ed (elastic / inelastic) = (velutic Consumer burden (per unit & total) = Producer burden (per unit & total) = Ratio of CB and PB AND Ed vs. Es = ナ 17 19 19 20 a. b. C. d. e. f. g. h. i. Ratio of Tax Burden Method 1: A $4 tax, consumers paid $2 producers also paid $2, CB ($2): PB ($2) = 1:1 Method 2 Consumer burden = $100 Producer burden = $100 CB ($100): PB ($100) = 1:1 Ed vs. Es As CB = PB, so Ed = Es (if CB > PB → Ed < Es; CB < PB → Ed > Es) New price for supply after imposing $4 tax
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