9. Relationship between tax revenues, deadweight loss, and demandelasticityThe government is considering levying a tax of $60 per unit on suppliers of either smart watches or yoga mats. The supply curve for each of these twogoods is identical, as you can see on each of the following graphs. The demand for smart watches is shown by Dw (on the first graph), and thedemand for yoga mats is shown by Dy (on the second graph).Suppose the government taxes smart watches. The following graph shows the annual supply and demand for this good. It also shows the supply curve(S + Tax) shifted up by the amount of the proposed tax ($60 per watch).On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for smart watches. Then use theblack triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.PRICE (Dollars per watch)1201101009080706050403020100Smart Watches MarketS+TaxSupplyMO0 50 100 150 200 250 300 350 400 450 500 550 600QUANTITY (Watches)Tax RevenueDeadweight Loss(?)Instead, suppose the government taxes yoga mats. The following graph shows the annual supply and demand for this good, as well as the supplycurve shifted up by the amount of the proposed tax ($60 per mat).On the following graph, do for yoga mats the same thing you did previously on the graph for smart watches. Use the green rectangle (trianglesymbols) to shade the area that represents tax revenue for yoga mats. Then, use the black triangle (plus symbols) to shade the area that representsthe deadweight loss associated with the tax. Instead, suppose the government taxes yoga mats. The following graph shows the annual supply and demand for this good, as well as the supplycurve shifted up by the amount of the proposed tax ($60 per mat).On the following graph, do for yoga mats the same thing you did previously on the graph for smart watches. Use the green rectangle (trianglesymbols) to shade the area that represents tax revenue for yoga mats. Then, use the black triangle (plus symbols) to shade the area that representsthe deadweight loss associated with the tax.PRICE (Dollars per mat)1201101009080706050403020100Yoga Mats MarketS+TaxIf the Government Taxes...Smart watches at $60 per watchYoga mats at $60 per matSupply0 50 100 150 200 250 300 350 400 450 500 550 600QUANTITY (Mats)smaller deadweight loss.DyYTax RevenueDeadweight LossComplete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals.Tax Revenue Deadweight Loss(Dollars)(Dollars)(?)Suppose the government wants to tax the good that will generate more tax revenue at a lower welfare cost. In this case, it should taxbecause, all else held constant, taxing a good with a relativelyelastic demand generates larger tax revenue and

Tax incidence refers to the burden of tax that is imposed on buyers and sellers.The burden of tax…

Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. If the Government Taxes... Smart watches at $60 per watch Yoga mats at $60 per mat Tax Revenue (Dollars) smaller deadweight loss. Deadweight Loss (Dollars) Suppose the government wants to tax the good that will generate more tax revenue at a lower welfare cost. In this case, it should tax because, all else held constant, taxing a good with a relatively elastic demand generates larger tax revenue and

Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. If the Government Taxes... Smart watches at $60 per watch Yoga mats at $60 per mat Tax Revenue (Dollars) smaller deadweight loss. Deadweight Loss (Dollars) Suppose the government wants to tax the good that will generate more tax revenue at a lower welfare cost. In this case, it should tax because, all else held constant, taxing a good with a relatively elastic demand generates larger tax revenue and

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 20RQ: Under which circumstances does line tax burden fall entirely on consumers?

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i neeed help with this one i keep getting it wrong. it is a macroeconmics question
6.Suppose a $ 60 per unit tax on gasoline is place on the seller and assume that the demand curve for gasoline is perfectly inelastic and the supply curve is elastic. Assume that the equilibrium price on gasoline is $120 and the equilibrium quantity of gasoline before the tax is implemented is 200,000 units. Please answer the following questions below using a supply and demand graph and words. As a result of the $60 per unit tax being placed on the sellers, did the supply curve shift to the left or to the right? What happened to the equilibrium price and equilibrium quantity of gasoline after the $60 per unit tax was implemented? Who pays most or all of the burden of the $60 tax, the buyer or the seller, and WHY? Please calculate the tax revenue collected by the government. Please show your work and calculation. Did the government make the right decision in implementing the $60 per unit tax on the sellers? Why or why not? Explain.
Don't use chatgpt and make sure you include the graphs needed (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?
o Suppose the Canadian government has decided to place an excise tax of $20 per tire on producers of automobile tires. Excise taxes are also called sales or commodity taxes. Previously, there was no excise tax on automobile tires. As a result of the excise tax, producers of tires, such as Bridgestone and Michelin, are going to alter their tire prices. The graph illustrates the demand and supply curves for automobile tires before the excise tax. Please shift the appropriate curve or curves on the graph to demonstrate the impact of the new tax. What is the price consumers pay for a tire post tax? Round to the nearest 10. price paid by consumers: $ What is the price producers receive for a tire net of taxes? Round to the nearest 10. Price 150 140 130 120 110 100 90 80 70 60 50 O 1 2 3 01 4 5 Quantity 6 Supply Demad 7 8 9 10
4 Q-2Economics deals with the question as to “how to acquire more and more wealth by a nation,” and “how to utilize this wealth for obtaining material gains of human life.” Explain in detail what are the various sources of income for Oman and how it spends the income for the development of the country. Q-3Provide a situation where “more than unit elastic demand” is shown. Illustrate your answer by presenting suitable consumer produc in a graph. I need answer for two 2 queation and seapachily for 3
i need help , i keep getting it woring and this is my last chance macroeconmics question 9
The demand and supply equations for a product are: Q^d=300-6p and Q^x=-40+6p. . Determine the market Equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graph and explain . Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss
3. Relationship between tax revenues, deadweight loss, and demand elasticity The government is considering levying a tax of $120 per unit on suppliers of either pickleball paddles or metro cards. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for pickleball paddles is shown by Dr (on the first graph), and the demand for metro cards is shown by Dy (on the second graph). Suppose the government taxes pickleball paddles. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+ Tax) shifted up by the amount of the proposed tax ($120 per paddle). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for pickleball paddles. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. PRICE (Dollars per paddle) 240 220 200 160 140 120 80 40 0 0 Pickleball…
This is one question. Thank you for helping me understand the material.
Suppose that demand for gasoline is 0.5 (Ed=0.5) and the supply of gasoline pizza is 1.25 (E, = 1.25). If the government imposes a $1 per gallon excise tax on the production of gasoline, then the price that consumers pay will and the price that producers receive will O increase by more than $0.50; decrease by more than $0.50. O increase by more than $0.50, but less than $1; increase by more than $0.50, but less than $1. increase by more than $0.50, but less than $1; decrease by less than $0.50. decrease by more than $0.50, but less than $1; increase by less than $0.50. increase by less than $0.50; decrease by more than $0.50, but less than $1.
Country Z produces and consumes only two products: milk and bread. The price elasticity of demand ofbread is Ed = −0.1 = 0.1 and the price elasticity of demand of wheat is Ed = −2 = 2The government of country Z needs a significant amount of fund to tackle the current coronavirussituation. To obtain the fund, they have decided to impose a $ 5 tax on either the sellers of rice or thesellers of wheat. Currently, both the equilibrium prices of wheat and rice are $20 per unit respectively.The equilibrium quantities of wheat and rice are 10,000 units (per day) respectively.As the economic advisor of country Z, what would you advise the government of country Z. Whichproduct should they tax to obtain the fund to tackle the coronavirus situation? Discuss in detail using theModel of Demand and Supply (your answer should include two well labeled graphs).
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