In what situation would producer surplus be positiv O When the price the producer is willing to charge is less than the market price O When the price the producer is willing to charge is greater than the market price O When the price the producer is willing to charge equals the market price O When there is no tax applied to the good QUESTION 73 Income Tax Cost $100 $20 $500 $10 $1,000 $2 What type of tax system is best represented by the table above? O Flat tax O Proportional tax O Progressive tax O Regressive tax

In what situation would producer surplus be positiv O When the price the producer is willing to charge is less than the market price O When the price the producer is willing to charge is greater than the market price O When the price the producer is willing to charge equals the market price O When there is no tax applied to the good QUESTION 73 Income Tax Cost $100 $20 $500 $10 $1,000 $2 What type of tax system is best represented by the table above? O Flat tax O Proportional tax O Progressive tax O Regressive 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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Question 4 Figure #3: The graph below represents a $10 per unit tax on a good then the amount bought and sold in the market is only 4 units. Note that Q represents quantity and P represents price. P. 24 20 A 16 Supply 12 GIH 8. 4. K M Demand 4 6 10 12 14 16 Refer to Figure #3. The government collects tax revenue that is (or are) the area(s) represented by the area OF-G-L OL OB-D Oc-F
1. Consider the market for rubber bands. If this market has very elastic supply and very inelastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Use the tools of consumer surplus and producer surplus in syour answer. a. b. If this market has very inelastic supply and very elastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Contrast your answer with your answer to part (a).
Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080-7P --120+3P Suppose now that government iniposes S60 tax per unit of output on sellars. What is the tax revenue for the govemment at the equilibrium? 7200 7320 6840 6000
QUESTION 23 Refer to the graph below for a market. ↑Price 48 Supply 44 40 36 32 28 24 20 16 12- 8 4 Demand ++++ Quantity 10 15 20 25 30 35 40 45 50 55 60 Assuming that the government imposes a tax size of AB in the above market, Based on that calculate 1. Consumer surplus after taxes 2. Producer surplus after taxes 3. Tax revenue after taxes 4. Deadweight loss if any after taxes Note: Make sure to calculate the exact dollar amount with the steps. T T T F Paragraph 只i8公 Arial 3 (12pt) O f • Mashups HOO HTML CSS Click Save and Submit to save and submit. Click Save All Answers to save all answers.
The vertical distance between points A and B represents the original tax. 12+ 11+ 10 9 8 7. 6 Price 2 1 D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit tax from $5.00 to $7.50, then the price paid by buyers would be $10.50, the price received by sellers would be $3, and the quantity sold in the market would be 0.5 units. Deadweight loss would now be a. $1.50 O b. $0.50 c. $4.0 Od. $0.625
Figure 4-5. The graph shows the impact of an excise tax. Price $2.00 1.50 1.00 .50 B A M E H K I 350 F 500 Quantity tax G Stax $1.00 for consumers and $0.50 for producers $1.00 for consumers and $1.00 for producers. $0.25 for consumers and $0.75 for producers. $0.50 for consumers and $0.50 for producers. S DSR Refer to Figure 4-5. The amount of the actual tax burden paid by consumers and producers is
Please write a Demand Equation & a Supply Equation such that when the Government imposes a tax of Rs 3, the burden to the extent of Rs 2 is borne by the producers while Re 1 is borne by the consumers. No need to calculate Consumer Surplus, Producer Surplus or DWL.
28 24 20 16 12 8 4 0 P 0 4 O a) $6, buyers Ob) S6, sellers Oc) $48, buyers O d) $48, sellers 8 12 16 20 S D 24 Q 15. Based on this graph, depicting the imposition of a $6 per unit sales tax on a good, how much total revenue does the government collect, and who bears more of the economic burden of this tax - buyers or sellers?
Refer to Figure 3 below. If the government imposes a tax of $6 per unit in this market, what price will buyers pay per unit after the tax is imposed? 18- 16 Supply 14 12 10 4 Demand 30 60 90 120 150 180 210 240 270 Q Select one: a.12 b.8 c.10 O d.6 According to the Figure 3 above. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the sellers in this market? Select one: a.4 b.2 с. 8 d.6 00 OOOO
10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 300 600 900 1200 1500 1800 2100 Supply Demand 2400 Suppose that a tax of $3 was inserted into the market above, what would be the new price that consumers pay? O a.7 O b.6 O c. 8 O d.5
18) Which of the following options best describes tax incidence? A) It equals to the loss in the social welfare measured by total surplus. B) It shows how tax burden is shared by buyers and sellers. C) It equals to the sum of new consumer and producer surplus resulted from tax. D) It is revenue government agency collects from buyers and sellers from imposing per unit tax.
Suppose that your state raises its sales tax from5 percent to 6 percent The state revenue commissionerlo~asts a 20 percent increase in sales tax revenue.Is this plausible? Explain.