A Tax of $5.00 is levied on the buyer of the item below. P 10 7.5 5 2.5 --- Supply Demand 200 400 600 800 Q 1. The equilibrium price before the tax. $ 2. The price that buyers effectively pay after the tax. $ 3. The price that sellers effectively receive after the tax. $ 4. The incidence of the tax on buyers is. $ 5. The incidence of the tax on sellers is. $ 6. Deadweight Loss of the Tax (calculated as the area of loss) Area of a triangle (Base x Height)

A Tax of $5.00 is levied on the buyer of the item below. P 10 7.5 5 2.5 --- Supply Demand 200 400 600 800 Q 1. The equilibrium price before the tax. $ 2. The price that buyers effectively pay after the tax. $ 3. The price that sellers effectively receive after the tax. $ 4. The incidence of the tax on buyers is. $ 5. The incidence of the tax on sellers is. $ 6. Deadweight Loss of the Tax (calculated as the area of loss) Area of a triangle (Base x Height)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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PRICE 21096 11 8 3 2 1 E Supply Demand H 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 QUANTITY Refer to Figure 8-2. The amount of tax revenue received by the government is a) $10. b) $1. c) s
7. Effect of a tax on buyers and sellers The following graph shows the weekly market for craft beer in some hypothetical economy. Suppose the government levies a tax of $40.60 per case. The tax places a wedge between the price buyers pay and the price sellers receive. PRICE (Dollars per case) 200 100 140 140 120 400 40 411 20 11 Demand 40 20 Tax Wedge Supply 20 30 411 30 4 19 NO QUANTITY (Cases of craft beer) 100
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
24 22 20 A 18 16+ 14+ Supply B 12 10- F H 6. 4 K Demand 2+ ++→ 16 4. 10 12 14 One effect of the tax is to reduce consumer surplus by S36. reduce producer surplus by $24. create a deadweight loss of $20. 8. 2.
indicate whether you think the statement is true or false andexplain why. 9. Natural gas and coal are two fuels used for electricity generation and their cross-price elasticity is positive.10. A tax on gasoline will have a smaller deadweight loss if the demand for gas is inelasticthan if it is elastic.11. If the solar panel industry is competitive, the marginal firm makes zero profits in the longrun.12. The supply of goods depends on the vertical aggregation of individual demands.13. Applying dynamic efficiency to non-depletable renewable energy is not necessary becauseits quantity will not in the future.14. Given a competitive oil market and zero extraction cost, dynamic efficiency entails that thecurrent oil price equals the present discounted value of the future price.
Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 D 40 60 Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show all work. а. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what that value is? C. How much is the consumer surplus before the tax? d. How much is producer surplus before the tax? е. How much is the consumer surplus after the tax? f. How much is producer surplus after the tax? g. How much is the deadweight loss as a result of the tax
7.7 pleaase explain
Question 22 If the goal is to have the smallest deadweight loss, then a $1 tax should be imposed upon: a a market with highly elastic demand and highly elastic supply. b a market with highly inelastic demand and highly inelastic supply. c a market with highly elastic demand and unit elastic supply. d a market with unit elastic demand and unit elastic supply.
The vertical distance between points A and B represents a tax in the market. 12 11 10 210 A Supply 9 PRICE 65 4 3 B 10 2 1 MNr Demand + 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITY Refer to Figure. The imposition of the tax causes the price paid by buyers to O decrease by $2. O increase by $3. O decrease by $4, O increase by $5.
QUESTION 18 Exhibit 19-6 Price of Good X 0 Quantity of Good X Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two equilibrium prices are $2.20 and $2.75. What is the tax revenue collected from the tax that shifted S 1 to S 2 when D 1 is the relevant demand curve? a. $440 Ob. $600 O c. $900 Od. $800
P $3.00 $2.66 $2.00 18. You are in the business of producing and selling hamburgers, French fries, pizza, and ice cream. The mayor of your city plans to impose a sales tax on one of these products. Based on the elasticities: j. k. Which of these goods would your customers least like to be taxed? Which of these goods would your customers prefer to be taxed? B S₁ So 130 150 bb bb Figure two: effect of excise tax on supply and demand QUESTION #19: a) TO OU a. b. C. b) a. b. C. Before the Tax: Price the Consumer Pays = Price the Producer Receives = Quantity = After the Tax, Price the Consumer Pays = Price the Producer Receives = Tax per unit = d. Quantity = e. Total Tax Revenue = f. Proportion of the Total Tax Consumers Pay = g. Proportion of the Total Tax Producers Pay = h. Who Pays the Burden of the Tax = i. DWL = ?
5. Calculating tax incidence Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 25 million cases of cola were sold every month at a price of $7 per case. After the tax, 18 million cases of cola are sold every month; consumers pay $8 per case, and producers receive $5 per case (after paying the tax). The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. O True O False