Recently, in response to the health complications of soda, many localities are considering a per- unit tax in the amount of $1 on suppliers. To include the tax, the supply function model above can be revised to be S: (p-1) = 16 Qs Analyze the impact of a specific tax by answering the following questions. e. Draw the new supply curve on your graph. f. What price will suppliers now charge and how much will be exchanged in the market? g. After paying the tax, how much will suppliers receive per unit? h. Tax revenue equals tax times the amount exchanged in the market. What will tax revenue be? i. Shade in tax revenue on your graph.
Recently, in response to the health complications of soda, many localities are considering a per- unit tax in the amount of $1 on suppliers. To include the tax, the supply function model above can be revised to be S: (p-1) = 16 Qs Analyze the impact of a specific tax by answering the following questions. e. Draw the new supply curve on your graph. f. What price will suppliers now charge and how much will be exchanged in the market? g. After paying the tax, how much will suppliers receive per unit? h. Tax revenue equals tax times the amount exchanged in the market. What will tax revenue be? i. Shade in tax revenue on your graph.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 1SQP
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Question
![Recently, in response to the health complications of soda,
many localities are considering a per- unit tax in the
amount of $1 on suppliers. To include the tax, the supply
function model above can be revised to be S: (p-1) = 16
Qs Analyze the impact of a specific tax by answering the
following questions. e. Draw the new supply curve on your
graph. f. What price will suppliers now charge and how
much will be exchanged in the market? g. After paying the
tax, how much will suppliers receive per unit? h. Tax
revenue equals tax times the amount exchanged in the
market. What will tax revenue be? i. Shade in tax revenue
on your graph.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0392705-60b5-4e1e-b1a0-23b214a41f88%2F287cc6ec-2da6-4112-adcb-4b1c1a02f192%2Fiva8tuc7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Recently, in response to the health complications of soda,
many localities are considering a per- unit tax in the
amount of $1 on suppliers. To include the tax, the supply
function model above can be revised to be S: (p-1) = 16
Qs Analyze the impact of a specific tax by answering the
following questions. e. Draw the new supply curve on your
graph. f. What price will suppliers now charge and how
much will be exchanged in the market? g. After paying the
tax, how much will suppliers receive per unit? h. Tax
revenue equals tax times the amount exchanged in the
market. What will tax revenue be? i. Shade in tax revenue
on your graph.
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