Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the supply curve before tax and S after tax is the supply curve after the tax. Use the graph to answer the following questions: 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 price 5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity The equilibrium price in the market before the tax is imposed is $ The price paid by buyers after the tax is imposed is $ The price sellers receive after the tax is imposed is $ The amount of the tax per unit is $ Buyers pay $ S after tax Sellers pay $ of the tax per unit. of the tax per unit. S The government tax revenue is $ The deadweight loss of the tax is D
Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the supply curve before tax and S after tax is the supply curve after the tax. Use the graph to answer the following questions: 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 price 5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity The equilibrium price in the market before the tax is imposed is $ The price paid by buyers after the tax is imposed is $ The price sellers receive after the tax is imposed is $ The amount of the tax per unit is $ Buyers pay $ S after tax Sellers pay $ of the tax per unit. of the tax per unit. S The government tax revenue is $ The deadweight loss of the tax is D
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 5QR
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Question
![Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the supply
curve before tax and S after tax is the supply curve after the tax. Use the graph to answer the following
questions:
7
6.5
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
price
5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity
The equilibrium price in the market before the tax is imposed is $
The price paid by buyers after the tax is imposed is $
The price sellers receive after the tax is imposed is $
The amount of the tax per unit is $
S after tax
Buyers pay $
Sellers pay $
of the tax per unit.
of the tax per unit.
S
The government tax revenue is $
The deadweight loss of the tax is
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec3aba8c-1fb1-40b1-b518-d998e2a02e44%2F1e155b36-5132-4a78-9efb-07afdbbcf1f7%2F1ku17dp_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the supply
curve before tax and S after tax is the supply curve after the tax. Use the graph to answer the following
questions:
7
6.5
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
price
5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity
The equilibrium price in the market before the tax is imposed is $
The price paid by buyers after the tax is imposed is $
The price sellers receive after the tax is imposed is $
The amount of the tax per unit is $
S after tax
Buyers pay $
Sellers pay $
of the tax per unit.
of the tax per unit.
S
The government tax revenue is $
The deadweight loss of the tax is
D
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