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.
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 $15 tax? c) If the tax were on Instead on the demand side, how many units would consumers buy? d) According to this tool, sellers are O better off worse off equally well off when the tax is imposed on buyers instead of on sellers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![li, GRAPH
O SETTINGS
Tax Burden
of
Reset
($) 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
$50.00
4,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8634aa5a-0395-4ed9-8346-75b455f23a74%2Fe45f1a76-93b6-4b1b-b036-96b0e5c5014f%2Fc227j04_processed.jpeg&w=3840&q=75)
Transcribed Image Text:li, GRAPH
O SETTINGS
Tax Burden
of
Reset
($) 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8634aa5a-0395-4ed9-8346-75b455f23a74%2Fe45f1a76-93b6-4b1b-b036-96b0e5c5014f%2Fk4kfpq_processed.jpeg&w=3840&q=75)
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.
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