any taxes.First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer handbags in the absence of a tax. Then use the greenpoint (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamondsymbol) to shade the area representing total producer surplus (PS) at the equilibrium price.PRICE (Dollars per handbag)400200240PRICE (Dollars per handbag)2001601201804002 2 2 2 2 2 2 8 8 9400360320200200DemandSuppose the government imposes an excise tax on designer handbags. The black line on the following graph shows the tax wedge created by a tax of$160 per handbag.160First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade thearea representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producersurplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss.240 Tax Wedge120DSupplygs. The following grapn shows the demand and supply for designer handbags before the government impose0 120 240 360 480 600 720 840 960 1080 1200QUANTITY/thanaDemandBefore TaxSupplyEquilibriumΔAfter TaxConsumer Surplus◇Producer SurplusTax RevenueAConsumer Surplus●Producer SurplusDeadweight Loss(? PRICE (Dolla16012080400Supply0 120 240 360 480 600 720 840 960 1080 1200QUANTITY (Handbags)Consumer SurplusProducer SurplusTax RevenueDeadweight LossComplete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumersurplus, producer surplus, tax revenue, and deadweight loss after the tax.Note: You can determine the areas of different portions of the graph by selecting the relevant area.Before Tax(Dollars)00Producer SurplusAfter Tax(Dollars)Deadweight Loss

Consumer surplus is a measure of consumer well-being arises from purchasing a product. It arises as…

PRICE (Dolla 120 80 40 0 Supply 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Handbags) Consumer Surplus Producer Surplus Tax Revenue Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Deadweight Loss Before Tax (Dollars) 0 0 Producer Surplus After Tax (Dollars) Deadweight Loss

PRICE (Dolla 120 80 40 0 Supply 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Handbags) Consumer Surplus Producer Surplus Tax Revenue Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Deadweight Loss Before Tax (Dollars) 0 0 Producer Surplus After Tax (Dollars) Deadweight Loss

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

i need help with this question 8 from my microeconmics assigments. i have already gotten it wrong twice.
Each state imposes its own excise tax on gasoline. Suppose, for example, that the state of Massachusetts imposes a state gasoline tax of $0.26 per gallon. Suppose further that an average of 1,022,000 gallons of gasoline per day were sold in Massachusetts in 2010. a. Massachusetts' total revenue from the gasoline tax in 2010 was approximately $111 million $86 million $97 million $232 million
A state tax on portable electronic devices causes one store's weekly sales of high-end smartphone cases to decrease from 70 to 65. The tax is assessed at the point of sale as a tax on buyers. In the graph below, drag the appropriate curve to show a shift as a result of the tax. Then use the area tool to outline the region that represents the resulting tax revenue for the state. To refer to the graphing tutorial for this question type, please click here. Price (5) 100 150 140 130 120 110 100 00 80 70 00 50 40 30 20 10 0 D S 8 8 8 8 8 Quantity (per week)
6. Who should pay the tax? Part 2 The following graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 200. Suppose the government has decided to institute a $2-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity…
Use the following graph of the market for cases of beer to answer the questions that follow. (Note: You will not be graded on any changes you make to the graph.) Price of Beer 10 9 8 7 3 2 1 0 0 Demand 1 2 3 4 5 Quantity of Beer 7 8 Supply 9 10 + Scratch points (?
Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per pair) 2 2 2 2 2 2 2 2 O 50 40 35 Supply 30 25 # 15 Demand 10 5 45 0 I 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of shoes) Before Tax After Tax Buyers Sellers Graph Input Tool Market for Shoes Quantity (Pairs of shoes) Tax Burden (Dollars per pair) Elasticity Demand Price (Dollars per pair) The burden of the tax falls more heavily on the Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay (Dollars per pair) Price Sellers Receive (Dollars per pair) (Pairs of shoes) 50 25.00 10 75.00 elastic side of the…
Explain the relationship between the first 5 graphs and the Laffer Curve (also shown). Note: Please include the graph for extreme tax and the Laffer curve in this question.
Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to $1 per liter is levied on soft drink sellers, please answer the following questions: 1. Buyers would spend a total of $___________ million on soft drinks. 2. Sellers would receive a total of $____________ million (after-tax) from selling soft drinks. 3. The government revenue from this tax would be $____________ million.
- FINAL EXAM FALL 2016 ECON 101 Figure 6-22 7 65. 6 5.5 5. 45 4 35 3 25- 2- ↑price 15 1 05 D Class: S Date: 5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity 45. Refer to Figure 6-22. The effective price sellers receive after the tax is imposed is a. $2.00, b. $3.50. c. $5.00. d. $3.00.
Typed and correct answer please. I ll rate
Problem 2. The effects of a tax on labor income. Use the labor market graph below to help answer the questions. wage rate ($) 36 32 28 24 20 20 16 12 8 4 Suppl Deman Hours of work per week (millions) 200 400 600 800 1000 1200 1400 1600 1800 a.) The equilibrium wage is and the equilibrium quantity of labor is b.) Now suppose that the government imposes a tax of $6 on workers. i.) Show the effects on the graph. The new equilibrium wage is quantity of labor is ii.) How much of the $6 tax are workers actually paying? $ paying? $ iii.) Show the excess burden (deadweight loss) of the tax. iv.) What is the total tax revenue raised? $ and the equilibrium How much are their employers c.) Suppose that this is actually the Social Security tax, which levies half of the tax on workers and half of the tax on firms. Use the graph above (or paste a new one in below) that shows the effects of this tax if it were instead split between firms and workers. • What will be the new equilibrium wage now? • How…
Please provide the answers based on what is asked.