Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive (Pairs of jeans) (Dollars per pair) (Dollars per pair) Before Tax After Tax 2.76 Using the data you entered in the p 5.52 able, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply ove 0.35 evant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) 0.36 ity Buyers Sellers The burden of the tax falls more heavily on the elastic side of the market.

Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive (Pairs of jeans) (Dollars per pair) (Dollars per pair) Before Tax After Tax 2.76 Using the data you entered in the p 5.52 able, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply ove 0.35 evant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) 0.36 ity Buyers Sellers The burden of the tax falls more heavily on the elastic side of the market.

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

100%

Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
Price Buyers Pay
Price Sellers Receive
(Pairs of jeans)
(Dollars per pair)
(Dollars per pair)
Before Tax
After Tax
2.76
Using the data you entered in the p 5.52 able, calculate the rax burden that falls on buyers and on sellers, respectively, and calculate the price
elasticity of demand and supply ove
evant ranges using the midpoint method. Enter your results in the following table.
0.35
Tax Burden
(Dollars per pair)
0.36
ity
Buyers
Sellers
The burden of the tax falls mor
heavily on the
elastic side of the market.

The following graph shows the daily market for jeans. Suppose the government institutes a tax of $40.60 per pair. This places a wedge between the
price buyers pay and the price sellers receive.
200
180
180
Demand
Supply
140
120
100
Tax Wedge
80
60
40
20
50
100
150
200
250
300
350
400
450
500
QUANTITY (Pairs of jeans)
PRICE (Dollars per pair)

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