Price P1 PO P2 DO 51 E1 50 Q1 'EO 00 $1 50 DO Quantity a. Based on the above graph, the price sellers and buyers receive before the tax imposed are b. Based on the above graph, the price sellers and buyers will pay after the tax imposed are c. Based on the above graph, the size of the tax that sellers would pay is. ( d. Based on the above graph, the size of the tax that buyers would pay is .. e. Based on the above graph, the total of the tax imposed in this market is.

Price P1 PO P2 DO 51 E1 50 Q1 'EO 00 $1 50 DO Quantity a. Based on the above graph, the price sellers and buyers receive before the tax imposed are b. Based on the above graph, the price sellers and buyers will pay after the tax imposed are c. Based on the above graph, the size of the tax that sellers would pay is. ( d. Based on the above graph, the size of the tax that buyers would pay is .. e. Based on the above graph, the total of the tax imposed in this market is.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Price 10 D, 10 15 Quantity The above graph shows a market with a tax imposed on consumers of a good. (a) On the graph, shade or label the region equal to the deadweight loss of the tax. Calculate the size of the deadweight loss. (b) On the graph, shade or label the region equal to the tax revenue from the tax. Calculate the size of the tax revenue.
Figure 8-5 Price Pa P₁ P₂ 0 < B D 41 F -Tax- G 9₂ a. A b. C+EX C. B+C Od. D+E C E H Q₁ Quantity Refer to Figure 8-5. Assume the tax was levied on the producer. Which area represents the reduction in consumer surplus?
age Figure 7-2 Price P₁ P₂ B D O a. ACF O b. ABD O C. DEF O d. BCED E Q₂ 8₂ D Quantity Refer to Figure 7-2. Which area represents consumer surplus at a price of P1? me left:52:46 NEXT PAGE
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 green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. PRICE (Dollars per handbag) 500 450 400 Demand 350 300 250 200 Before Tax Supply 150 100 50 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Handbags) + Equilibrium Consumer Surplus Producer Surplus ?
Refer to the figure, Price (dollars) 600 550 500 450 400 350 300 250 200 150 100 50 0 Market for Game Consoles S 10 20 30 40 50 60 70 80 90 100110 Quantity Toola DL 0 O Use the graph to show the area representing the deadweight loss, and then determine the deadweight loss created as a result of setting the price at $150. Instructions: Use the tool provided "DL to illustrate this area on the graph. Deadweight loss: $
Price (dollars per hour) 7.00 6.60 6.00 5.60 5.00 0 1 2 3 4 5 6 7 8 Quantity (thousands of frisbees) Figure 6.3.1 OB) $5.60. S + tax Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed. On each frisbee, the sellers' burden of the tax is OA) $0.60. OC) $0.40. S OD) $6.60.
9. Effect of a tax on buyers and sellers The following graph shows the daily market for shoes when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $23.20 per pair, to be paid by the seller. 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. Hint: To see the impact of the tax, first enter the value of the tax in the Tax on Sellers field. Adjust the value in the price field to move the green line to the after-tax equilibrium so that quantity demanded equals quantity supplied. Graph Input Tool Market for Shoes 200 180 I Price (Dollars per pair) $100 160 Quantity Demanded (Pairs of shoes) Quantity Supplied (Pairs of shoes) Supply 250.00 250.00 140 120 100 Supply Shifter 80 Demand Tax on Sellers (Dollars per pair) 60 0.00 40 20 50 100 150 200 250…
A sales tax is imposed on good A. The supply of good A is not perfectly elastic or perfectly inelastic. Suppose that the demand for good A becomes more inelastic. (a) Will the tax burden on sellers increase or decrease? (b) Will the DWL increase or decrease?
Ch 8: Practice Sheet 2 Figure 8-5 Price 922 16 1. Refer to Figure 8-5 above. What happens to consumer surplus when a tax is imposed in this market? a. It falls by $900 b. It falls by $1800 c. It falls by $2,700 d. It falls by $3,600 2. Refer to Figure 8-7 below. A tax levy forced consumers to pay a price of $18 per unit. What is tax rate (size) imposed in this market? a. $10 ²00 b. $18 c. 58 d. $12 3. Refer to Figure 8-7 below. After the tax levy, the burden of tax on consumers is a. $18 b. $10 c. $8 d. 56 4. Refer to Figure 8-7 below. After the tax levy, the burden of tax on producers is a $10 b. $8 c. 56 d. 54 G a 5. Refer to Figure 8-7. One effect of the tax is to a. reduce consumer surplus from $60 to $24. c. create a deadweight loss of $24. 6. Refer to Figure 8-7. One effect of the tax is to a. reduce the quantity demanded from 8 to 4. c. create a tax revenue of $40. 10 Supply Demand 14 16 2 b. reduce producer surplus from $32 to $8. d. All of the above are correct. b. reduce the…
a. $7 b. $3 c. Between $5 and $7 d. Between $3 and $5 7 PRICE EL 3 60 100 fer to Figure 6-11. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is posed? QUANTITY
Which of the following is true when there is a tax imposed in a market with perfectlyinelastic supply? Assume that the amount of the tax is less than the price before the tax isimplemented.(a) Buyers pay all of the tax(b) Buyers pay some but not all of the tax(c) Price paid by consumers falls by the amount of the tax(d) Price paid by consumers does not change(e) None of the above