Complete the following table, given the information presented on the graph. Result Equilibrium quantity before tax Per-unit tax $ Price consumers pay before tax $ Value In the following table, indicate which of the previous graph's areas corresponds to each concept. Check all that apply. Concept Producer surplus after the tax is imposed Tax revenue after the tax is imposed Consumer surplus after the tax is imposed A B A с 0 D O U E O 0 F 0

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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1. Understanding the implications of taxes on welfare
The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) indicates the pre-tax
equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.
PRICE (Dollars per pinckney)
15.00
11.00
7.00
Demand
B
D
F
*
C
E
Supply
QUANTITY (Pinckneys)
?
Transcribed Image Text:1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per pinckney) 15.00 11.00 7.00 Demand B D F * C E Supply QUANTITY (Pinckneys) ?
Complete the following table, given the information presented on the graph.
Result
Equilibrium quantity before tax
Per-unit tax
$
Price consumers pay before tax $
Value
In the following table, indicate which of the previous graph's areas corresponds to each concept. Check all that apply.
Concept
Producer surplus after the tax is imposed
Tax revenue after the tax is imposed
Consumer surplus after the tax is imposed
A
B
U
с
O
D
D
E
U
F
U
Transcribed Image Text:Complete the following table, given the information presented on the graph. Result Equilibrium quantity before tax Per-unit tax $ Price consumers pay before tax $ Value In the following table, indicate which of the previous graph's areas corresponds to each concept. Check all that apply. Concept Producer surplus after the tax is imposed Tax revenue after the tax is imposed Consumer surplus after the tax is imposed A B U с O D D E U F U
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