Solve subparts a, c and d. The data in the following table is for the latest Book by Mark Blackfoot.a) Fill in the Quantity Supplied (after tax) column assuming that a $2 per unit excise tax is imposed on the supplier.Price toConsumersQuantityDemandedQuantitySupplied(before tax)QuantitySupplied (aftertax)8180609165751015090111351051212012013105135b) What is the equilibrium price and quantity before the tax?Equilibrium Price = $0Equilibrium Quantity = 0c) What is the equilibrium price and quantity after the $2 tax is imposed?Equilibrium Price (after tax) = $0Equilibrium Quantity (after tax) = 0d) What portion of the $2 tax is paid by the seller and what portion is paid by the consumer?Seller = S0Consumer = $0

The quantity demanded is the amount of a good or service that consumers are ready and able to…

Answered: Equilibrium Price = $0 Equilibrium…

Business

Economics

Equilibrium Price = $0 Equilibrium Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Solve subparts a, c and d.

The data in the following table is for the latest Book by Mark Blackfoot.
a) Fill in the Quantity Supplied (after tax) column assuming that a $2 per unit excise tax is imposed on the supplier.
Price to
Consumers
Quantity
Demanded
Quantity
Supplied
(before tax)
Quantity
Supplied (after
tax)
8
180
60
9
165
75
10
150
90
11
135
105
12
120
120
13
105
135
b) What is the equilibrium price and quantity before the tax?
Equilibrium Price = $0
Equilibrium Quantity = 0
c) What is the equilibrium price and quantity after the $2 tax is imposed?
Equilibrium Price (after tax) = $0
Equilibrium Quantity (after tax) = 0
d) What portion of the $2 tax is paid by the seller and what portion is paid by the consumer?
Seller = S0
Consumer = $0

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Step 1: Definition of equilibrium price and quantity

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Step 2: Determine the quantity supplied after the $2 tax is imposed

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Step 3: Determine the after-tax equilibrium price and quantity:

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Step 4: Evaluate the tax burden on consumers and producers

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