Due to a sales tax, the sale of gameboys decrease from 80 to 70. This tax is a tax on sellers when they receive the units from suppliers. How would the curve look due to this change? The image displays a supply and demand graph illustrating market equilibrium.### Graph Details:- **Axes**: - The vertical axis represents "Price ($)" ranging from 0 to 160. - The horizontal axis signifies "Quantity" ranging from 0 to 160.- **Curves**: - The **Supply (S)** curve is depicted in orange, sloping upwards from the bottom left to the top right. - The **Demand (D)** curve is shown in blue, sloping downwards from the top left to the bottom right.- **Equilibrium**: - The point where the supply and demand curves intersect represents the market equilibrium. - At the equilibrium, the price is 80, and the quantity is 80, indicating a balance between supply and demand.- **Additional Markings**: - A horizontal dashed line from the price of 80 on the y-axis aligns with the equilibrium point, indicating the equilibrium price. - A vertical dashed line from the quantity of 80 on the x-axis aligns with the equilibrium point, marking the equilibrium quantity.This graph is a visual representation of how supply and demand interact in a market to determine the price and quantity of goods.

Answered: Due to a sales tax, the sale of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Due to a sales tax, the sale of gameboys decrease from 80 to 70. This tax is a tax on sellers when they receive the units from suppliers. How would the curve look due to this change?

The image displays a supply and demand graph illustrating market equilibrium.

### Graph Details:

- **Axes**:
- The vertical axis represents "Price ($)" ranging from 0 to 160.
- The horizontal axis signifies "Quantity" ranging from 0 to 160.

- **Curves**:
- The **Supply (S)** curve is depicted in orange, sloping upwards from the bottom left to the top right.
- The **Demand (D)** curve is shown in blue, sloping downwards from the top left to the bottom right.

- **Equilibrium**:
- The point where the supply and demand curves intersect represents the market equilibrium.
- At the equilibrium, the price is 80, and the quantity is 80, indicating a balance between supply and demand.

- **Additional Markings**:
- A horizontal dashed line from the price of 80 on the y-axis aligns with the equilibrium point, indicating the equilibrium price.
- A vertical dashed line from the quantity of 80 on the x-axis aligns with the equilibrium point, marking the equilibrium quantity.

This graph is a visual representation of how supply and demand interact in a market to determine the price and quantity of goods.

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Introduction

Demand is the quantity of the commodity that is sought after at various prices throughout a specific time period. The quantity of the good that producers are willing to produce and make available for sale at various prices throughout a specific time period is referred to as supply. To determine a good's market equilibrium circumstances, demand and supply analysis is employed. This study also aids in identifying changes in market circumstances brought on by variations in prices and output.

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