b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? 210 sofas d. What is the totol amount of revenue collected by the government from the excise tax on sofas?
b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? 210 sofas d. What is the totol amount of revenue collected by the government from the excise tax on sofas?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve this economic subparts b, c and d.
Transcribed Image Text:Market Equilibrium and Policy Homework 6
Saved
Market for Sofas
Price
Quantity of Sofas
Demanded
Quantity of Sofas
Supplied
Quantity of Sofas Demanded with
(dollars)
$1,240
1,180
1,120
1,060
1,000
940
Excise Tax
240
290
270
270
120
9150
300
250
330
230
210
180
360
210
240
270
3:34:48
390
190
880
420
170
150
820
450
760
700
480
510
300
330
360
Book
130
110
Ask
Instructions: Enter your answers as a whole number.
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a. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron?
erences
P=$
1180
270 sofas
b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed?
c. After the excise tax is imposed, what is the new equilibrium quantity of sofas?
210 sofas
d. What is the total amount of revenue collected by the government from the excise tax on sofas?
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