To answer Questions #1 and #2, refer to the following diagram, which shows the monthly cigarette market in Wake County,North Carolina and the demand for, and supply of, cigarettes before and after the imposition of a $5.00-dollar per unit excisetax.Exam 2, Figure 1- The Wake County Market for CigarettesPer Pack PriceSupply with tax20.00Supply before tax18.0016.00Demand10.00Quantity Per Year(Milions of Packs)2Ceteris paribus, how much will the government collect in annual tax revenue from this tax?Select one:O a. $5 millionOb. $10 millionO c. $15 millionO d. $20 million What is the deadweight loss from this tax?Select one:Oa. $1.0 millionOb. $2.0 millionc. $2.5 milliond. $5.0 million

The tax is the mandatory unilateral payment which is made by the public towards the government for…

Answered: To answer Questions #1 and #2, refer to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7.8 please explain. the question 7.7 is provided in the screenshot as well
To answer Questions #1-3, refer to the following diagram, which shows the monthly cigarette market in Wake County, North Carolina and the demand for, and supply of, cigarettes before and after the imposition of a $5.00-dollar per unit excise tax. Exam 2, Figure1-The Wake County Market for Cigarettes Per Pack Price Supply with tax 20.00 Supply before tax 18.00 16.00 Demand 10.00 Quantity Per Year (Milions of Packs) Ceteris paribus, how much will the government collect in annual tax revenue from this tax? Select one: a. $5 million b. $10 million C. $15 million d. $20 million
Question 4 24 22 20 18 Supply 16 14 12 10 4 Demand 369 12 15 18 21 24 27 30 33 36 QUANTITY Consider the market described by the graph above where the vertical distance between points A and B represents a tax in the market. The per-unit burden of the tax on sellers is $4 and the tax results in a loss of $72 in producer surplus. $8 and the tax results in a loss of $48 in producer surplus. $4 and the tax results in a loss of $16 in producer surplus. $8 and the tax results in a loss of $16 in producer surplus.
1) Consider a market where the demand and supply for a particular good is as shown below: P (TL/unit) 210900 7610 32- 12 11 8 5 1 2 3 4 5 6 7 8 9 101112 Q (units/day) a. Find the (own-price) elasticity of supply at the price of 5 TL/unit. b. If the government imposed a price ceiling of 3 TL/unit, what would the equilib- rium price and the equilibrium quantity be? What would the consumers' surplus, producers' surplus, and dead-weight loss be under this policy? c. If the government imposed a tax at the rate of 3 TL/unit on the consumer what would the equilibrium price that the consumers face be? What would the equilib- rium price that the producers face be? What is the quantity traded at equilibrium? What is the consumers' surplus, producers' surplus and the dead-weight loss under this policy? d. Is there a government policy that, under this policy the quantity traded, at equilib- rium, would be 7 units/day? If there is such a policy, be specific about the policy stating all the…
Q26
The following graph shows the market for the long-distance bus rides. In the absence of taxes, the equilibrium price of a ride is $5 and the equilibrium quantity is 10 million rides. Suppose that regulator levies an excise tax on bus service providers. The amount of excise tax equals $2 per ride. How much will bus service providers get per ticket after the tax is imposed? $5.50 $4 $4.50 $5
The state of Colorado's excise tax on beer is 8 cents per gallon. Suppose that the excess burden created by this tax is $40 million. If the tax is increased from 8 cents to 12 cents per gallon, what will be the new excess burden in this market? (The answer is $90 million)
S1 10 SO 8. Demand 0 10 20 30 40 50 60 70 80 90 100 Q Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of 40 units in the graph above. If the government decides to add a $2 per-únit tax on this good, the deadweight loss from the tax will be: 80 70 60 O 10 46676 5432 10
Q3 Consider the following demand and supply equations Q subscript d open parentheses P close parentheses equals 2410 minus 3 P Q subscript S open parentheses P close parentheses equals 100 plus 12 P Suppose that the government imposes a $30 tax on the product Assume that the sellers collect the tax from buyers and submit the tax to the government Calculate the price that sellers receive after the tax is imposed (i.e., the price excluding the per unit tax they submit to the government)
Suppose that the local government of Santa Fe decides to institute a tax on soda consumers. Before the tax, 45,000 liters of soda were sold every week at a price of $10 per liter. After the tax, 38,000 liters of soda are sold every week; consumers pay $14 per liter (including the tax), and producers receive $8 per liter. The amount of the tax on a liter of soda is 3 that falls on producers is 5 per liter. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. True per liter. Of this amount, the burden that falls on consumers is 3 O False per liter, and the burden
In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is tax revenue out of this tax? (Remember that the tax does not change the demand and supply curves).
QUESTION 46 46. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn, what will happen if the government eliminates the price support for corn? a) Demand for ethanol will increase. b) Demand for ethanol will decrease. c) Supply of ethanol will increase. d) Supply of ethanol will decrease. e) Both (a) and (c)

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