What is the formula/ way to include tax into these equations. I’m not sure how to graph 1532B. Perfectly elastic demand; buyers pay an excise taxDemand: P = 12Supply: P = 4 + ½QTax per unit: t = $4Equilibrium, no tax: Q* = _16_ p* = $_12With tax: Qт 3Price paid by buyers: PD = $_Price received by sellers: Ps = $Percentage of tax shifted =Tax revenue raised: REV = $Deadweight loss:DWL = $Tax efficiency ratio: TAXEFF =C. Perfectly elastic supply; sellers pay an excise taxTax ner unit: t = $4

If an excise tax of $4 is imposed the consumers will pay $4 more than the producers. So, Pb=Ps+4,…

B. Perfectly elastic demand; buyers pay an excise tax Demand: P = 12 Supply: P = 4 + ½Q Tax per unit: t= $4 Equilibrium, no tax: Q* = _l6_ p* = $_12 With tax: QT = %3D %3D Price paid by buyers: PD = $_ Price received by sellers: Ps = $ %3D Percentage of tax shifted = Tax revenue raised: REV = $ Deadweight loss: DWL = $ Tax efficiency ratio: TAXEFF = %3D %3D

B. Perfectly elastic demand; buyers pay an excise tax Demand: P = 12 Supply: P = 4 + ½Q Tax per unit: t= $4 Equilibrium, no tax: Q* = _l6_ p* = $_12 With tax: QT = %3D %3D Price paid by buyers: PD = $_ Price received by sellers: Ps = $ %3D Percentage of tax shifted = Tax revenue raised: REV = $ Deadweight loss: DWL = $ Tax efficiency ratio: TAXEFF = %3D %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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