Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept is $70 for the demand curve. Represent a $15 tax that is paid by sellers. a) How many units do sellers sell after the tax? b) How much less do sellers keep from the sale of each unit as a result of the $15 tax? c) If the tax were on Instead on the demand side, how many units would consumers buy? d) According to this tool, sellers are O better off worse off equally well off when the tax is imposed on buyers instead of on sellers.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
li, GRAPH
O SETTINGS
Tax Burden
of
Reset
($) Price
Tax imposed on:
Supply
Demand
90
$90.00
Excise Tox (0 - $20)
0.00
80
70
Demand
Perfectly
Inelastic
Relatively
Elastic
60
Relatively Elastic
$50.00
40
Supply
Less
Elastic
Perfectly
Elastic
30
Perfectly Elastic
20
10
CALCULATIONS
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Quantity
(thousands per week)
Price Paid
Quantity
No Tax
$50.00
4,000
With Tax
$50.00
4,000
Transcribed Image Text:li, GRAPH O SETTINGS Tax Burden of Reset ($) Price Tax imposed on: Supply Demand 90 $90.00 Excise Tox (0 - $20) 0.00 80 70 Demand Perfectly Inelastic Relatively Elastic 60 Relatively Elastic $50.00 40 Supply Less Elastic Perfectly Elastic 30 Perfectly Elastic 20 10 CALCULATIONS 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000
Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept is $70 for the demand
curve. Represent a $15 tax that is paid by sellers.
a) How many units do sellers sell after the tax?
b) How much less do sellers keep from the sale of cach unit as a result of the $15 tax?
c) If the tax were on instead on the demand side, how many units would consumers buy?
d) According to this tool, sellers are
O better off
O worse off
equally well off
when the tax is imposed on buyers Instead of on sellers.
Transcribed Image Text:Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept is $70 for the demand curve. Represent a $15 tax that is paid by sellers. a) How many units do sellers sell after the tax? b) How much less do sellers keep from the sale of cach unit as a result of the $15 tax? c) If the tax were on instead on the demand side, how many units would consumers buy? d) According to this tool, sellers are O better off O worse off equally well off when the tax is imposed on buyers Instead of on sellers.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Elasticity of demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education