Homework: Supply and Demand: An Initial Look9. Effect of a tax on buyers and sellersThe following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair.Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller.Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.Hint: To see the impact of the tax, first enter the value of the tax in the Tax on Sellers field. Adjust the value in the price field to move the green lineto the after-tax equilibrium so that quantity demanded equals quantity supplied.PRICE (Dollars per pair).2 2 2 2 2 2 2 2 no5045403530252015105DemandSupply0 10 20 30 40 50 60 70 80 90 100QUANTITY (Pairs of jeans)Graph Input ToolMarket for Jeans.Price(Dollars per pair)QuantityDemanded(Pairs of jeans)$2550.00Quantity Supplied(Pairs of jeans)Supply ShifterTax on Sellers(Dollars per pair)Ⓡ50.000.00 Fill in the following table with the quantity sold and the equilibrium price before and after the tax.Quantity(Pairs of jeans)Equilibrium Price(Dollars per pair)Before TaxAfter TaxAlthough the tax was $5.80 per pair, after the tax was imposed, the equilibrium price increased by sthe per-unit tax that is paid by the buyers. From this you can conclude that sellers pay the remaining sFwhich represents the amount ofof the $5.80-per-unit tax.

The tax burden is the estimate of tax charges by the government, which is borne by the consumers or…

Fill in the following table with the quantity sold and the equilibrium price before and after the tax. Quantity Equilibrium Price (Pairs of jeans) (Dollars per pair) Before Tax After Tax Although the tax was $5.80 per pair, after the tax was imposed, the equilibrium price increased by s the per-unit tax that is paid by the buyers. From this you can conclude that sellers pay the remaining s which represents the amount of of the $5.80-per-unit tax.

Fill in the following table with the quantity sold and the equilibrium price before and after the tax. Quantity Equilibrium Price (Pairs of jeans) (Dollars per pair) Before Tax After Tax Although the tax was $5.80 per pair, after the tax was imposed, the equilibrium price increased by s the per-unit tax that is paid by the buyers. From this you can conclude that sellers pay the remaining s which represents the amount of of the $5.80-per-unit tax.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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