PRICE (Dolars per bike) The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Demand Supply QUANTITY (Binkies) Complete the following table, given the information presented on the graph. Result Price producers receive after tax Per-unit tax Equilibrium quantity before tax Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Consumer surplus before the tax is imposed B C D E F Deadweight loss after the tax is imposed 。 Producer surplus after the tax is imposed ☐ ☐ ㅁ ☐ ☐ ☐

PRICE (Dolars per bike) The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Demand Supply QUANTITY (Binkies) Complete the following table, given the information presented on the graph. Result Price producers receive after tax Per-unit tax Equilibrium quantity before tax Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Consumer surplus before the tax is imposed B C D E F Deadweight loss after the tax is imposed 。 Producer surplus after the tax is imposed ☐ ☐ ㅁ ☐ ☐ ☐

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

The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax
equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.
PRICE (Dollars per blinke)
Demand
Supply
56.00---
48.00-
40.00
D
QUANTITY (Binkies)
Complete the following table, given the information presented on the graph.
Result
Value
Price producers receive after tax
Per-unit tax
$
$
Equilibrium quantity before tax
In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply.
Concept
Consumer surplus before the tax is imposed
Deadweight loss after the tax is imposed
Producer surplus after the tax is imposed
☐
☐
C
P ☐
U ☐
☐ ☐
☐ ☐
☐
☐
☐ ☐
E
☐ ☐ ☐
F ☐
☐
☐

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