The graph below represents the market for tubs of yoghurt. Answer the following questionsassuming a positive per-unit tax is placed on tubs of yoghurt.PS8.5085.5025(a) The per-unit tax is placed on50 55(b) The size of the tax is $ [Select][Select]Buyersthat sellers receive after the tax is $ [Select]80 85(c) The price that buyers pay after the tax is $ [Select](d) The quantity traded with the tax in place isreceive $ [Select](e) After the tax, buyers will pay $ [Select]relatively more [Select](f) In the end, buyers pay [Select]D2Q[Select]✓ relative to the quantity traded without tax.per tub.✓ less per tub.per tub.than sellers.per tub. The pricetubs leading tomore per tub. Sellers willbecause their demand curve is

The tax burden is shared by the buyer and seller based on the prevailing elasticity of demand and…

(b) The size of the tax isS $ (c) The price that buyers pay after the tax is $ [Select] that sellers receive after the tax is $ [Select] (d) The quantity traded with the tax in place is [Select] [Select] (e) After the tax, buyers will pay $ [Select] receive $ [Select] per tub. V✓ relative to the quantity traded without tax. less per tub. per tub. per tub. The price tubs leading to more per tub. Sellers will

(b) The size of the tax isS $ (c) The price that buyers pay after the tax is $ [Select] that sellers receive after the tax is $ [Select] (d) The quantity traded with the tax in place is [Select] [Select] (e) After the tax, buyers will pay $ [Select] receive $ [Select] per tub. V✓ relative to the quantity traded without tax. less per tub. per tub. per tub. The price tubs leading to more per tub. Sellers will

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 8-5 Price P3 P₁ P₂ 0 B D F -Tax- G 3₂2 с E Q₁ O a. A +B O b. A+B+C OC. D+E+F O d. A S Quantity Time left c Refer to Figure 8-5. Which area represents consumer surplus before the tax was levièd?
Price (dollars per tire) S + tax 70 60 50 40 D 30 20 10 10 20 30 40 50 60 70 Quantity (millions of tires per month) The figure above shows the market for tires. The government has imposed a tax on of the tax. tires, and the buyers pay A) $50 B) $60 C) $20 D) $10
2. Suppose the price.elasticity of demand for commödity M is less than one. When a tax is imposed on commodity Mproduetion, it changes the price, quantity, and consumer speņding in which of the following ways? - Price Quantity Spending Irierease Decrease Decreàse. Therease Ancrease a. Increase- b. -Deerease Decrease Decrease Decrease - Decrease Iacrease
Figure 8-5 Price Pa P₁ P₂ O d. $8 B Price D 2 F -Tax ● a. D+EX b. C+E C. B+C d. A Figure 8-5 G 92 C Refer to Figure 8-5. Assume the tax was levied on the consumer. Which area represents the reduction in consumer surplus? E 9₂ D Quantity
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.
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The table shows the market for tulips. Price (dollars per bunch) Quantity demanded Quantity supplied (bunches per week) 10 100 40 12 90 60 14 80 80 16 70 100 18 60 120 If tulips are taxed at $6 a bunch, what is the tax revenue? Tax revenue is $______ a week.
O out Figure 8-3 Price Pa P₂ P₁ a. Pl . b. P2 X -Tax- C. P3 - P2 d. P3 Figure 21 D B 92 Refer to Figure 8-3. What is the price sellers receive after the tax? D Quantity
Price a. A. b. B. c. B+C+E + F. d. B + C. e. C. PB Po Ps L AIBI А C 15 Size of tax per unit W Qo Supply Demand Quantity If a tax is placed on the product in this market, tax revenue paid by the buyers is the are
Suppose that the Australian government imposes a sales tax on a product and both buyers and sellers share the burden of the If the price elasticity of demand for the product is perfectly inelastic. Which of the following is true? Select one: a. Sellers would pay more of the tax than buyers. b. Buyers would pay all of the tax. c. Buyers and sellers would share the tax burden equally. d. Sellers would pay all the tax.
Figure 8-5 Price P3 P1 P₂ a. A C. B d. D F -Tax- G 92 C E P2 and Q2 o b. P2 and Q1 X P1 and Q1 P3 and Q2 H Refer to Figure 8-5. What is the price sellers receive after the tax and the quantity sold? 9₁₂ S Quantity
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