($) Price908R88 용의8070605040302010$74.00$16.001.02.0 3.04.05.06.07.0S+T8.0 9.0Quantity(thousands per week)Tax imposed on:Excise Tax (0-$20)DemandPerfectlyInelasticSupplyElasticCALCULATIONSNo TaxWith TaxSupplyRelatively ElasticRelatively ElasticDemandPrice Paid$50.00$52.696.50RelativelyElasticPerfectlyElasticQuantity4,0003,551 McInstructions Adjust the sliders so that the vertical intercept of the supply curve is $16.00 and the vertical intercept is $74.00 for thedemand curve. Assume there is initially no tax, and that a $6.50 tax is being proposed by policymakersReport all answers to two decimal placeso) Calculate the total amount of surplus that consumers would lose if the tax was implemented $b) Calculate the total amount of surplus that producers would lose if the tax was implemented $c) How much of the total losses for consumers and producers are recovered as government tax revenue? $d) is there any surplus lost by either consumers or producers that is not recovered as revenue? yes

The demand made by a consumer is represented in quantitative terms. Demand is termed for a given…

($) Price 90 80 70 60 40 30 20 10 0 $74.00 $16.00 1.0 2.0 3.0 4.0 5.0 6.0 7.0 S+T 8.0 9.0 Quantity (thousands per week) Tax imposed on: Supply Excise Tax (0-$20) Demand Perfectly Inelastic Supply CALCULATIONS No Tax With Tax Relatively Elastic Relatively Elastic Demand Price Paid $50.00 $52.69 6.50 Relatively Elastic Perfectly Elastic Quantity 4,000 3,551

($) Price 90 80 70 60 40 30 20 10 0 $74.00 $16.00 1.0 2.0 3.0 4.0 5.0 6.0 7.0 S+T 8.0 9.0 Quantity (thousands per week) Tax imposed on: Supply Excise Tax (0-$20) Demand Perfectly Inelastic Supply CALCULATIONS No Tax With Tax Relatively Elastic Relatively Elastic Demand Price Paid $50.00 $52.69 6.50 Relatively Elastic Perfectly Elastic Quantity 4,000 3,551

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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