the drop down options are jeans and allergy medication **Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals.**| If the Government Taxes... | Tax Revenue (Dollars) | Deadweight Loss (Dollars) ||----------------------------------------|-----------------------|---------------------------|| Jeans at $25 per pair | | || Allergy medication at $25 per bottle | | |If the government wants to impose the tax that is more efficient, it should tax ________ .(Hint: Assume the administrative burdens of the two tax laws are equal.) The government is considering levying a tax of $25 per unit on suppliers of either jeans or allergy medication. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for jeans is shown by $ D_J $ (on the first graph), and the demand for allergy medication is shown by $ D_A $ (on the second graph).Suppose the government taxes jeans. The following graph shows the annual supply and demand for this good. It also shows the supply curve $ (S + \text{Tax}) $ shifted up by the amount of the proposed tax ($25 per pair).On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for jeans. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.### Jeans Market- **Graph Description:** - The x-axis represents Quantity (Pairs). - The y-axis represents Price (Dollars per pair).- **Lines and Curves:** - **Supply:** The original supply curve, represented by an upward-sloping line. - **S + Tax:** The supply curve after the tax is applied, shifted upward. - **Demand $ D_J $:** The demand curve for jeans, represented by a downward-sloping line.- **Key Areas:** - **Tax Revenue:** Shaded with green rectangles. - **Deadweight Loss:** Shaded with black triangles.Instead, suppose the government taxes allergy medication. The following graph shows the annual supply and demand for this good, as well as the supply curve shifted up by the amount of the proposed tax ($25 per bottle).On the following graph, do the same thing that you did on the graph for jeans. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for allergy medication. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.### Allergy Medication Market- **Graph Description:** - The x-axis represents Quantity (Bottles). - The y-axis represents Price (Dollars per bottle).- **Lines and Curves:** - **Supply:** The original supply curve, represented by an upward-sloping line. - **S + Tax:** The supply curve after the tax is applied, shifted upward

Total revenue is the total receipts from sales of a given quantity of products or services. It is…

omplete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. Tax Revenue Deadweight Loss If the Government Taxes... (Dollars) (Dollars) Jeans at $25 per pair Allergy medication at $25 per bottle the government wants to impose the tax that is more efficient, it should tax (Hint: Assume the administrative burdens f the two tax laws are equal.)

omplete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. Tax Revenue Deadweight Loss If the Government Taxes... (Dollars) (Dollars) Jeans at $25 per pair Allergy medication at $25 per bottle the government wants to impose the tax that is more efficient, it should tax (Hint: Assume the administrative burdens f the two tax laws are equal.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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the drop down options are jeans and allergy medication

**Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals.**

| If the Government Taxes... | Tax Revenue (Dollars) | Deadweight Loss (Dollars) |
|----------------------------------------|-----------------------|---------------------------|
| Jeans at $25 per pair | | |
| Allergy medication at $25 per bottle | | |

If the government wants to impose the tax that is more efficient, it should tax ________ .
(Hint: Assume the administrative burdens of the two tax laws are equal.)

The government is considering levying a tax of $25 per unit on suppliers of either jeans or allergy medication. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for jeans is shown by $ D_J $ (on the first graph), and the demand for allergy medication is shown by $ D_A $ (on the second graph).

Suppose the government taxes jeans. The following graph shows the annual supply and demand for this good. It also shows the supply curve $ (S + \text{Tax}) $ shifted up by the amount of the proposed tax ($25 per pair).

On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for jeans. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.

### Jeans Market

- **Graph Description:**
- The x-axis represents Quantity (Pairs).
- The y-axis represents Price (Dollars per pair).

- **Lines and Curves:**
- **Supply:** The original supply curve, represented by an upward-sloping line.
- **S + Tax:** The supply curve after the tax is applied, shifted upward.
- **Demand $ D_J $:** The demand curve for jeans, represented by a downward-sloping line.

- **Key Areas:**
- **Tax Revenue:** Shaded with green rectangles.
- **Deadweight Loss:** Shaded with black triangles.

Instead, suppose the government taxes allergy medication. The following graph shows the annual supply and demand for this good, as well as the supply curve shifted up by the amount of the proposed tax ($25 per bottle).

On the following graph, do the same thing that you did on the graph for jeans. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for allergy medication. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.

### Allergy Medication Market

- **Graph Description:**
- The x-axis represents Quantity (Bottles).
- The y-axis represents Price (Dollars per bottle).

- **Lines and Curves:**
- **Supply:** The original supply curve, represented by an upward-sloping line.
- **S + Tax:** The supply curve after the tax is applied, shifted upward

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