PART I Show/graph the following using demand and supply curves. 1. Buyers of a product will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden. 2. Buyers of a product will bear a smaller part of the tax burden, and sellers will bear the larger part of the tax burden 3. Show the size of total revenue and deadweight loss when a small-sized tax is introduced. 4. Show the size of total revenue and deadweight loss when a medium-sized tax is introduced. 5. Show the size of total revenue and deadweight loss when a large-sized tax is introduced. PART II. Use the following graph shown to fill in the table that follows. Price Supply Consumer surplus Producer surplus Tax revenue Total surplus 4 3 2 25 50 WITHOUT TAX Decamed WITH TAX CHANGE

PART I Show/graph the following using demand and supply curves. 1. Buyers of a product will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden. 2. Buyers of a product will bear a smaller part of the tax burden, and sellers will bear the larger part of the tax burden 3. Show the size of total revenue and deadweight loss when a small-sized tax is introduced. 4. Show the size of total revenue and deadweight loss when a medium-sized tax is introduced. 5. Show the size of total revenue and deadweight loss when a large-sized tax is introduced. PART II. Use the following graph shown to fill in the table that follows. Price Supply Consumer surplus Producer surplus Tax revenue Total surplus 4 3 2 25 50 WITHOUT TAX Decamed WITH TAX CHANGE

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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