ng.cengage.com CENGAGE MINDTAP Chapter 08 Problems & Applications Suppose that a tax of T is placed on buyers, so the new demand equation is as follows: QD = 240 - (P+T) The new equilibrium price is now P = 80 and the new equilibrium quantity is Q = 160 - 2. Tax revenue is Tx Q. Use the green points (triangle symbol) to graph tax revenue for the following tax (T) values: 0, 30, 90, 120, 150, 210, and 240. Tax Revenue (Thousands of dollars) 22 12 10 88 6 2 0 0 50 30 60 90 120 150 180 210 240 270 300 T Laffer Curve The following graph shows the old and new equilibrium Information and now the deadweight loss of a tax is the area of the triangle between the 88 a DII DD

ng.cengage.com CENGAGE MINDTAP Chapter 08 Problems & Applications Suppose that a tax of T is placed on buyers, so the new demand equation is as follows: QD = 240 - (P+T) The new equilibrium price is now P = 80 and the new equilibrium quantity is Q = 160 - 2. Tax revenue is Tx Q. Use the green points (triangle symbol) to graph tax revenue for the following tax (T) values: 0, 30, 90, 120, 150, 210, and 240. Tax Revenue (Thousands of dollars) 22 12 10 88 6 2 0 0 50 30 60 90 120 150 180 210 240 270 300 T Laffer Curve The following graph shows the old and new equilibrium Information and now the deadweight loss of a tax is the area of the triangle between the 88 a DII DD

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 4CQ

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do fast.