Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves (one before and one after the tax). Show the old and new prices and quantities.Use shading to show who gets the different parts of the surplus and indicate if there is any deadweight loss. Comment on implications for tax policy.

Q: How to determine consumer surplus, producer surplus, tax revenue, economic surplus after tax?

A:

Q: When a government imposes a tax in a market, it allows the government to   Question 9 options:…

A: Tax imposed on the good results in same changes irrespective of on whom the tax is imposed.

Q: PRICE (Dollars per pinckney) A. he following graph represents the demand and supply for pinckneys…

A: Equilibrium is achieved at the output level where Qs equals Qd.

Q: Explain how tax size and elasticity of demand/supply affect the size of tax revenue and social…

A: Elasticity of demand: It the measurement  of the percentage change in the quantity demanded of a…

Q: Question 5

A: The difference between the consumer’s maximum willingness to pay and the actual price is known as…

Q: Refer to Figure 8-12. Which of the following combinations will create the largest deadweight loss…

A: Deadweight loss is the scenario where the market equilibrium is disrupted by tax implication…

Q: Seeing a golden opportunity to increase its revenue, assume the City of Boston has decided to levy a…

A: When a tax is imposed on every unit of quantity sold, then the tax burden is shared by the seller…

Q: The government has imposed an indirect tax on good A and the coefficient of the price elasticity of…

A: Elasticity of demand is a concept in economics that measures how sensitive the quantity demanded of…

Q: The supply for gasoline is more elastic than the demand of gasoline. If gasoline is taxed $1 per…

A: The question is asking about the division of tax burden between buyers and sellers when a tax is…

Q: Q97 Before the imposition of a tax, the equilibrium price and quantity are $15 and 100,…

A: Q97 Before the imposition of a tax, the equilibrium price and quantity are $15 and 100,…

Q: Explain three different types of taxes imposed in the United States including the reason for its…

A: Following are the three types of tax imposed in the United States: Progressive Regressive…

Q: hen demand is elastic Draw a diagram and explain how consumer burden is determined…

A: The tax burden is distributed between the buyer and seller based on the prevailing elasticities of…

Q: If the market price before the tax is $10.05, the tax implemented is $5.9 on buyers, and the market…

A: The tax is the charge or fee on goods and services charged from the economic agent imposed by the…

Q: What is the ideal market for a government to impose a tax? × B C D A market with elastic supply and…

A: Demand will be categorized as inelastic when the demand for an item or service remains unchanged…

Q: Miller wants to discourage the energy drink market with a $2 tax on energy drinks (that on average…

A: When the government imposes per unit of tax then the burden of tax is shared by the buyer and…

Q: The market price will _______ when the tax is implied on the commodity

A: A tax refer to a legally set fee by the local or central government on economic entities with the…

Q: the tax of $6 per unit ,the price that consumers will pay is $10 and quantity sold is Q=20…

A: the tax of $6 per unit ,the price that consumers will pay is $10 and quantity sold is Q=20

Q: Name three types of taxes and analyze the deadweight loss of each.

A: Taxes are the legal proceedings and the amount of money which is levied on the consumers, producers,…

Q: draw a graph with the demand curve, supply curve, equilibrium price/quantity, tax price, tax…

A: Originally , the equilibrium is at point e with equilibrium price p and equilibrium quantity q.…

Q: Assume that the demand for coal is more elastic than the supply. A tax on coal will    a. increase…

A: A tax could be a mandatory fee or financial charge levied by any government on a personal or a…

Q: Eighth Assignment Find and graph the Post Tax Consumer Surplus, Producer Surplus, Tax Revenue, and…

A: Deadweight loss, also known as excess burden or allocative inefficiency, is an economic concept that…

Q: A. What is consumer surplus after the tax?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a modern, industrial society, the tax system is derived from several disciplines. Identify the…

A: In the complex web of modern industrial societies like the United States, the tax system is…

Q: Use the following figure to answer the question: What is the consumer surplus in this market when…

A: Demand curve is the downward-sloping curve. Supply curve is the upward-sloping curve. Equilibrium is…

Q: Use the following graph shown to fill in the table that follows. Consumer surplus Producer surplus…

A: The consumer surplus refers to an area below the demand curve and  above the equilibrium price of…

Q: The following graph shows the daily market for wine. Suppose the government institutes a tax of…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: At the current market equilibrium, price is $17 and quantity is 50. A tax of 25% is imposed, after…

A: A tax is a financial surcharge imposed by the government on an economic activity such as production…

Q: PD=12-3q PS= 2+2Q Tax imposed=5 market is in equilibrium. what is the tax burden on…

A: Demand: PD=12-3q qd=(12-P)/3 Supply: PS=2+2Q qs=(P-2)/2 Tax imposed=5   Initial Equilibrium:…

Q: Why is deadweight loss disagreed on by experts? Explain.

A: Deadweight loss: It is a cost which is paid to the society in which is created by market efficiency.…

Q: Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 k…

A: Consumer Surplus when there is no tax = 1/2*(22-10)*600 = 300*12 = 3600 Consumer Surplus when there…

Q: In general, on which side of the market does a tax burden fall more heavily? on the side of the…

A: The measurement of change in the quantity required of a good owing to changes in the determinants of…

Q: The graph shows the market for mechanical pencils in which the government has imposed a sales tax of…

A: Consumer Surplus: Consumer surplus is the net benefit that the consumer receives by purchasing…

Q: Imagine that you work for the central bureaucracy and you need to raise revenue.  You want to use a…

A: Price elasticity measures the responsiveness in quantity demanded/supplied of a commodity to a…

Q: conomists in Champaign have been studying the local market for pizza. The market is described in the…

A: With tax imposed in the free market, the equilibrium quantity will fall and the market price will…

Q: Now suppose that the price elasticity of demand is 1, price elasticity of supply is 2, and a 25 %…

A: Elasticity is defined as the response to a price change in the supply and demand of a product.…

Q: Which of the following is an example of implicit costs?   A. payments made by the firm to others…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When a tax per unit is placed on the buyer of a good: a the equilibrium price falls and the…

A: The tax could either be imposed on the producer or the buyer. A tax causes both the consumer surplus…

Q: Explain how an increase in tax can reduce tax revenue of a government

A: Tax is the major source of revenue for the government. The major government spending is funded from…

Q: Name three types of taxes and analyze the deadweight loss of each.

A: Tax is cash that must be paid to the state by individuals. Tax payments were intended to provide for…

Q: The incidence of a unit tax depends on the elasticities of supply and demand.  With appropriate…

A: The markets for goods, and services operate on the basis of the demand forces, where the demand…

Q: Suppose the following graph depicts the supply and demand for a good after a tax is imposed. How…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: True or false the burden of of the tax falls on the party who actually pays the money for the tax to…

A: Taxes are an important government policy instrument that is used to collect revenue from the public…

Q: Price (per ride) $7.50 7.00 6.50 6.00 5.50 E 5.00 4.50 4.00 3.50 3.00 D 2.50 2.00 6 7 8 9 10 11 12…

A: The given graph represents the market for the long-distance bus rides with the equilibrium at the…