Price per gallon Quantity demanded Quantity supplied S2.70 60 180 160 S2.60 70 S2.50 90 140 $2.40 120 120 $2.30 160 100 $2.20 210 80 If there are no price controls in this market, but there is a tax imposed of $0.25 per gallon: What will be the actual price consumers must pay (including tax)? S About how many gallons will actually be bought and sold? About how much of the burden (incidence) of this tax will consumers bear per gallon? $ About how much of the burden (incidence) of this tax will producers bear per gallon? S How much revenue will the government make from this tax? $
Price per gallon Quantity demanded Quantity supplied S2.70 60 180 160 S2.60 70 S2.50 90 140 $2.40 120 120 $2.30 160 100 $2.20 210 80 If there are no price controls in this market, but there is a tax imposed of $0.25 per gallon: What will be the actual price consumers must pay (including tax)? S About how many gallons will actually be bought and sold? About how much of the burden (incidence) of this tax will consumers bear per gallon? $ About how much of the burden (incidence) of this tax will producers bear per gallon? S How much revenue will the government make from this tax? $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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10
![Price per gallon
Quantity demanded
Quantity supplied
S2.70
60
180
160
S2.60
70
S2.50
90
140
$2.40
120
120
$2.30
160
100
$2.20
210
80
If there are no price controls in this market, but there is a tax imposed of $0.25 per gallon:
What will be the actual price consumers must pay (including tax)? S
About how many gallons will actually be bought and sold?
About how much of the burden (incidence) of this tax will consumers bear per gallon? $
About how much of the burden (incidence) of this tax will producers bear per gallon? S
How much revenue will the government make from this tax? $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aca8a48-2311-440a-95ca-2787608ca55c%2F57b4cc46-eec5-4d41-be8d-66b92d76db5a%2Fdk7efm_processed.png&w=3840&q=75)
Transcribed Image Text:Price per gallon
Quantity demanded
Quantity supplied
S2.70
60
180
160
S2.60
70
S2.50
90
140
$2.40
120
120
$2.30
160
100
$2.20
210
80
If there are no price controls in this market, but there is a tax imposed of $0.25 per gallon:
What will be the actual price consumers must pay (including tax)? S
About how many gallons will actually be bought and sold?
About how much of the burden (incidence) of this tax will consumers bear per gallon? $
About how much of the burden (incidence) of this tax will producers bear per gallon? S
How much revenue will the government make from this tax? $
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