9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply curve shifted to the left such that the vertical distance between the original supply curve and the new (supply + tax) curve equals the sales tax divided by the price elasticity of demand. sales tax multiplied by the price elasticity of demand. sales tax multiplied by the price elasticity of supply. amount of the sales tax.
9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply curve shifted to the left such that the vertical distance between the original supply curve and the new (supply + tax) curve equals the sales tax divided by the price elasticity of demand. sales tax multiplied by the price elasticity of demand. sales tax multiplied by the price elasticity of supply. amount of the sales tax.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 6CQQ
Related questions
Question
![9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply
curve shifted to the left such that the vertical distance between the original supply
curve and the new (supply + tax) curve equals the
sales tax divided by the price elasticity of demand.
sales tax multiplied by the price elasticity of demand.
sales tax multiplied by the price elasticity of supply.
amount of the sales tax.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a4dcd82-baf4-45bc-b40b-693a3e683492%2Ffdcebbc6-713f-49c8-9d28-1612432c2214%2Flpire6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply
curve shifted to the left such that the vertical distance between the original supply
curve and the new (supply + tax) curve equals the
sales tax divided by the price elasticity of demand.
sales tax multiplied by the price elasticity of demand.
sales tax multiplied by the price elasticity of supply.
amount of the sales tax.
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