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Oliva, Noem NAME PRINT LAST NAME, FIRST NAME SECTION# 00 COMMODITY TAXATION If the price of a cup of coffee is $2.00 in the absence of any tax, and a $0.30 per cup tax is levied on coffee, ceteris paribus, then: 1. consumers will be forced to pay $2.30 per cup. sellers will be forced to accept $1.70 per cup. the after-tax price per cup will most likely be between $2.00 and $2.30. the after-tax price per cup will most likely be greater than $2.30. a. b. C. The economic burden of a tax: a. is always shifted to consumers by raising the product price by the amount of the tax. is borne by sellers if supply is perfectly elastic. is partially shifted to consumers through higher prices in most cases. falls on sellers if the statutory burden of the tax is on sellers. b. C. d. Use the graph below to answer questions 3 and 4: Price Supply + Tax $40 Supply $32 $28- Demand $20 $16 tax $4 1200 Quantity $0 800 Asa result of the $12 per-unit tax imposed on this commodity, the quantity pro and there is a deadweight loss of 3. 2.

Oliva, Noem NAME PRINT LAST NAME, FIRST NAME SECTION# 00 COMMODITY TAXATION If the price of a cup of coffee is $2.00 in the absence of any tax, and a $0.30 per cup tax is levied on coffee, ceteris paribus, then: 1. consumers will be forced to pay $2.30 per cup. sellers will be forced to accept $1.70 per cup. the after-tax price per cup will most likely be between $2.00 and $2.30. the after-tax price per cup will most likely be greater than $2.30. a. b. C. The economic burden of a tax: a. is always shifted to consumers by raising the product price by the amount of the tax. is borne by sellers if supply is perfectly elastic. is partially shifted to consumers through higher prices in most cases. falls on sellers if the statutory burden of the tax is on sellers. b. C. d. Use the graph below to answer questions 3 and 4: Price Supply + Tax $40 Supply $32 $28- Demand $20 $16 tax $4 1200 Quantity $0 800 Asa result of the $12 per-unit tax imposed on this commodity, the quantity pro and there is a deadweight loss of 3. 2.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Oliva, Noem NAME PRINT LAST NAME, FIRST NAME SECTION# 00 COMMODITY TAXATION If the price of a cup of coffee is $2.00 in the absence of any tax, and a $0.30 per cup tax is levied on coffee, ceteris paribus, then: 1. consumers will be forced to pay $2.30 per cup. sellers will be forced to accept $1.70 per cup. the after-tax price per cup will most likely be between $2.00 and $2.30. the after-tax price per cup will most likely be greater than $2.30. a. b. C. The economic burden of a tax: a. is always shifted to consumers by raising the product price by the amount of the tax. is borne by sellers if supply is perfectly elastic. is partially shifted to consumers through higher prices in most cases. falls on sellers if the statutory burden of the tax is on sellers. b. C. d. Use the graph below to answer questions 3 and 4: Price Supply + Tax $40 Supply $32 $28- Demand $20 $16 tax $4 1200 Quantity $0 800 Asa result of the $12 per-unit tax imposed on this commodity, the quantity pro and there is a deadweight loss of 3. 2.
Transcribed Image Text:Oliva, Noem NAME PRINT LAST NAME, FIRST NAME SECTION# 00 COMMODITY TAXATION If the price of a cup of coffee is $2.00 in the absence of any tax, and a $0.30 per cup tax is levied on coffee, ceteris paribus, then: 1. consumers will be forced to pay $2.30 per cup. sellers will be forced to accept $1.70 per cup. the after-tax price per cup will most likely be between $2.00 and $2.30. the after-tax price per cup will most likely be greater than $2.30. a. b. C. The economic burden of a tax: a. is always shifted to consumers by raising the product price by the amount of the tax. is borne by sellers if supply is perfectly elastic. is partially shifted to consumers through higher prices in most cases. falls on sellers if the statutory burden of the tax is on sellers. b. C. d. Use the graph below to answer questions 3 and 4: Price Supply + Tax $40 Supply $32 $28- Demand $20 $16 tax $4 1200 Quantity $0 800 Asa result of the $12 per-unit tax imposed on this commodity, the quantity pro and there is a deadweight loss of 3. 2.
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