Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity after tax Price consumers pay after-tax Per unit tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept A B C D E F Consumer surplus after the tax is imposed Producer surplus before the tax is imposed Tax revenue after the tax is imposed
Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity after tax Price consumers pay after-tax Per unit tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept A B C D E F Consumer surplus after the tax is imposed Producer surplus before the tax is imposed Tax revenue after the tax is imposed
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1. Understanding the implications of taxes on welfare
The following graph represents the demand and supply for Pinckney (an imaginary product). 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.
Complete the following table, given the information presented on the graph.
Result
|
Value
|
---|---|
Equilibrium quantity after tax |
|
Price consumers pay after-tax |
|
Per unit tax |
|
In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply.
Concept
|
A
|
B
|
C
|
D
|
E
|
F
|
|
---|---|---|---|---|---|---|---|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
Tax revenue after the tax is imposed |
|
|
|
|
|
|
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