Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes anytaxes.First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters 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 scooter)40036032028024020016012080400DemandSupplyBefore Tax0 120 240 360 480 600 720 840 960 1080 1200QUANTITY (Scooters)EquilibriumAConsumer Surplus>Producer Surplus(?)Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of$160 per scooter.First, 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. PRICE (Dollars per scooter)400360320280240 Tax Wedge2001601208040Demand0Supply0 120 240 360 480 600 720 840 960 1080 1200QUANTITY (Scooters)Consumer SurplusProducer SurplusAfter TaxTax RevenueDeadweight LossBefore Tax(Dollars)00Tax RevenueComplete 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.After Tax(Dollars)AConsumer SurplusProducer SurplusDeadweight Loss?

The consumer surplus is usually, the amount the consumers pays, which is generally lower than the…

PRICE (Dollars per scooter) 400 360 320 280 240 Tax Wedge 200 160 120 80 40 Demand 0 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Scooters) Consumer Surplus Producer Surplus Supply Tax Revenue After Tax Deadweight Loss 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. Before Tax (Dollars) 0 0 Tax Revenue After Tax (Dollars) Consumer Surplus Producer Surplus Deadweight Loss

PRICE (Dollars per scooter) 400 360 320 280 240 Tax Wedge 200 160 120 80 40 Demand 0 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Scooters) Consumer Surplus Producer Surplus Supply Tax Revenue After Tax Deadweight Loss 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. Before Tax (Dollars) 0 0 Tax Revenue After Tax (Dollars) Consumer Surplus Producer Surplus Deadweight Loss

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 4 (0.5 points) 15 Demand + Subsidy 14 13 12 11 Demand MB = 10 9 Price 6543210 Supply = MC 0 10 20 30 40 10 Quantity 50 50 Using the graph above, calculate total surplus when the consumers are given a $5 subsidy. $400 $200 $450 $550
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.
7. Effect of a tax on buyers and sellers The following graph shows the weekly market for craft beer in some hypothetical economy. Suppose the government levies a tax of $23.20 per case. The tax places a wedge between the price buyers pay and the price sellers receive. PRICE (Dollars per case) 100 90 80 70 60 Tax Wedge 50 40 30 20 10 Supply Demand 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Cases of craft beer) ? Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity (Cases of craft beer) Price Buyers Pay (Dollars per case) Price Sellers Receive (Dollars per case) Before Tax After Tax Using your answers from the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Buyers Sellers Tax Burden (Dollars per…
2.5 QUANTITY (Pinckneys) Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity before tax Per-unit tax Price consumers pay after tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. D E A Concept Consumer surplus after the tax is imposed Deadweight loss after the tax is imposed Producer surplus after the tax is imposed B.
7. Effect of a tax on buyers and sellers Part 2 The following graph shows the daily market for wine. Suppose the government institutes a tax of $10.15 per bottle. This places a wedge between the price buyers pay and the price sellers receive.
6. Who should pay the tax? The following graph gives the labor market for laboratory aides in the imaginary country of Sophos. The equilibrium hourly wage is $10, and the equilibrium number of laboratory aides is 150. Suppose the federal government of Sophos has decided to institute an hourly payroll tax of $4 on laboratory aides and wants to determine whether the tax should be levied on the workers, the employers, or both (in such a way that half the tax is collected from each party). 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 pe 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 dolla 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…
As you can read from the image, corporate tax seems to be bad for car companies but because owners invest in other industries it is relatively good for other industries. Doesn't that cancel out the bad effect corporate tax may have on the car industry?
point(s) possible Submit Next question The graph shows the market for basketballs, when sellers are taxed $6 a ball. Price (dollars per ball) 27 What is the excess burden of the tax? 25- Is the demand for basketballs or the supply of basketballs more inelastic? $+tax 23- 21- 19- Draw a shape that shows the excess burden of the tax on basketballs. 17+16 15 15- AS The excess burden of the tax on basketballs is $ million. 13- D The supply of basketballs is more than the demand for basketballs, and 11-T0 the pays most of the tax. SS 9- O A. inelastic; seller 7- 12 O B. inelastic; buyer 5+ 16 12 Quantity (millions of balls) 8. C. elastic; buyer D. elastic: seller >> Draw only the objects specified in the question. its O Time Remaining: 00:53:44 Next mpleted his course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e MacBook Pro O O O O
Assume that the graph below reflects the market for pack of cigarettes in Virginia. The vertical axis is the price of a pack of cigarettes and the horizontal axis is the packs of cigarettes in thousands. 11 10 If the state of Virginia imposes a $6 sales tax on a pack of cigarettes and as a result, consumers pay $9 for a pack of cigarettes, then" suppliers are paying 33 percent of the tax and the state will take in $60,000 in tax revenue. consumers are paying 67 percent of the tax and the state will take in $280,000 in tax revenue. consumers are paying 67 percent of the tax and the state will take in $120,000 in tax revenue. suppliers are paying 33 percent of the tax and the state will take in $180,000 in tax revenue. O O 10 20 30 40 50 60 70 80 90 100 110 120 Q ·OO
Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. Use the line drawing tool to draw a new supply curve reflecting a $30 per pound tax. Label this line 'STaxı Carefully follow the instructions above, and only draw the required object. (Enter all responses as whole numbers) The new price consumers will pay is $65 and the new price producers will receive is $ C Price 100- 95- 90- 85- 80- 75- 70- 65- 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- -O 2 STax 3 4 5 6 Quantity (thousands) -∞ 8 S D 9
Macmillan M The Ministry of Misallocation has decreed that the production of widgets must be 7000 each month and that the production of gizmos must be 4000 each month. Calculate the deadweight loss in each market caused by these restrictions. Note that the scale of the quantity axis is in thousands. S Price of widgets $10 9 8 7 6 5 4 $ 3 2 1 0 Supply Demand What is the deadweight loss in the widgets market? X 1 2 3 4 5 6 7 8 9 10 Quantity of widgets (in thousands) What is the deadweight loss in the gizmos market? Price of gizmos $100 90 80 70 60 50 40 30 20 10 0 Supply Demand 33159e3-e40a-4... 2 4 6 8 10 12 14 16 18 20 Quantity of gizmos (in thousands) L