ter 06 Homework he following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government levies a tax of $10.15 per pair. The tax places a wedge between the ice buyers pay and the price sellers receive. 50 65 45 H 40 Demand Supply 35 35 500, 25 PRICE (Dollars per pair) 15 10 Tax Wedge 0 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Pairs of sweatpants) Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Sellers Receive Price Buyers Pay (Pairs of sweatpants) (Dollars per pair) Before Tax After Tax (Dollars per pair) Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity (Pairs of sweatpants) Price Buyers Pay (Dollars per pair) Price Sellers Receive (Dollars per pair) Before Tax After Tax Using your answers from the previous table, calculate the tax burden that falls on buyers and on salers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity Buyers Sellers The tax burden falls more heavily on the side of the market that is elastic. Grade It Now Save & Continue Continue without saving
ter 06 Homework he following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government levies a tax of $10.15 per pair. The tax places a wedge between the ice buyers pay and the price sellers receive. 50 65 45 H 40 Demand Supply 35 35 500, 25 PRICE (Dollars per pair) 15 10 Tax Wedge 0 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Pairs of sweatpants) Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Sellers Receive Price Buyers Pay (Pairs of sweatpants) (Dollars per pair) Before Tax After Tax (Dollars per pair) Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity (Pairs of sweatpants) Price Buyers Pay (Dollars per pair) Price Sellers Receive (Dollars per pair) Before Tax After Tax Using your answers from the previous table, calculate the tax burden that falls on buyers and on salers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity Buyers Sellers The tax burden falls more heavily on the side of the market that is elastic. Grade It Now Save & Continue Continue without saving
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
Problem 3TY
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Transcribed Image Text:ter 06 Homework
he following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government levies a tax of $10.15 per pair. The tax places a wedge between the
ice buyers pay and the price sellers receive.
50
65
45
H
40
Demand
Supply
35
35
500, 25
PRICE (Dollars per pair)
15
10
Tax Wedge
0
0
100
200 300
400 500
600 700 800
900 1000
QUANTITY (Pairs of sweatpants)
Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
Price Sellers Receive
Price Buyers Pay
(Pairs of sweatpants)
(Dollars per pair)
Before Tax
After Tax
(Dollars per pair)
Transcribed Image Text:Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
(Pairs of sweatpants)
Price Buyers Pay
(Dollars per pair)
Price Sellers Receive
(Dollars per pair)
Before Tax
After Tax
Using your answers from the previous table, calculate the tax burden that falls on buyers and on salers, respectively, and calculate the price elasticity of demand and supply over the relevant
ranges using the midpoint method. Enter your results in the following table.
Tax Burden
(Dollars per pair)
Elasticity
Buyers
Sellers
The tax burden falls more heavily on the side of the market that is
elastic.
Grade It Now
Save & Continue
Continue without saving
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