Now calculate the government's tax revenue if it sets a tax of $0, $20, $40, $50, $60, $80, or $100 per bottle. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 4000 3600 3200 2800 2400 2000 1600 1200 800 400 0 0 10 20 True 30 40 50 60 TAX (Dollars per bottle) False 70 80 90 100 Suppose the government is currently imposing a $60-per-bottle tax on gin. Laffer Curve True or False: The government can raise its tax revenue by increasing the per-unit tax on gin. ?
Now calculate the government's tax revenue if it sets a tax of $0, $20, $40, $50, $60, $80, or $100 per bottle. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 4000 3600 3200 2800 2400 2000 1600 1200 800 400 0 0 10 20 True 30 40 50 60 TAX (Dollars per bottle) False 70 80 90 100 Suppose the government is currently imposing a $60-per-bottle tax on gin. Laffer Curve True or False: The government can raise its tax revenue by increasing the per-unit tax on gin. ?
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 10PA
Related questions
Question
![Now calculate the government's tax revenue if it sets a tax of $0, $20, $40, $50, $60, $80, or $100 per bottle. (Hint: To find the equilibrium quantity
after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using
the green points (triangle symbol) to plot total tax revenue at each of those tax levels.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
TAX REVENUE (Dollars)
4000
3600
3200
2800
2400
2000
1600
1200
800
400
0
0 10
20
True
30 40 50 60 70
TAX (Dollars per bottle)
False
80
+
90
100
pose the government is currently imposing a $60-per-bottle tax on gin.
Laffer Curve
True or False: The government can raise its tax revenue by increasing the per-unit tax on gin.
?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F861af1f0-9095-4900-ad4a-158f576b93e8%2F487092d7-e999-4066-8fe0-9db4ece1c1ce%2Fr5p1zxr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Now calculate the government's tax revenue if it sets a tax of $0, $20, $40, $50, $60, $80, or $100 per bottle. (Hint: To find the equilibrium quantity
after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using
the green points (triangle symbol) to plot total tax revenue at each of those tax levels.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
TAX REVENUE (Dollars)
4000
3600
3200
2800
2400
2000
1600
1200
800
400
0
0 10
20
True
30 40 50 60 70
TAX (Dollars per bottle)
False
80
+
90
100
pose the government is currently imposing a $60-per-bottle tax on gin.
Laffer Curve
True or False: The government can raise its tax revenue by increasing the per-unit tax on gin.
?
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