Refer to Figure 8. A tax of $4 per unit is imposed on this market. The quantity traded in this market BEFORE the tax is imposed was [ Select ] The quantity traded in this market AFTER the tax is imposed is [ Select ] The size of the government tax revenue from this tax is [ Select ]- The size of the deadweight loss from this tax is [ Select ]

Refer to Figure 8. A tax of $4 per unit is imposed on this market. The quantity traded in this market BEFORE the tax is imposed was [ Select ] The quantity traded in this market AFTER the tax is imposed is [ Select ] The size of the government tax revenue from this tax is [ Select ]- The size of the deadweight loss from this tax is [ Select ]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Describe in detail how taxes impact consumer and producer surplus. In your discussion, also show graphically, the before and after-tax impact. Why must local governments pay attention to the types of products they tax. Describe in detail how the elasticity of these products impacts the expected revenue to be generated by these local Governments Trade makes both consumers and producers better off. Explain this in detail with all appropriate graphs. How has your study of Economics so far provided insight to the business world around you? Explain why trade increases total surplus. In your analysis, show how this true from both importing and exporting goods and services. Please be thorough. How does the elasticity of a product impact Corporate Revenue? Why is it important for companies to understand this concept? What are Externalities? What some strategies the Government may use to address both positive and negative externalities What are Public Goods and…
A $6 B C $5 D E $4 F G H 怒怒 $3 J K $2 L S D Q1 Q2 Q3 When the government puts a $4 tax on this market, what is the tax revenue? A+B+D+G+J+L D+E+G+H B+D+G+J D+E+F+G+H+I
Suppose the government of Country X would like to reduce traffic congestion by imposing a per-unit tax on car sellers. а. With the aid of a well-labeled demand-and-supply diagram, explain the effects of the per-unit sales tax on the car market in Country X, and the tax incidence. b. Many car sellers complain about the heavy tax burden of the per-unit sales tax. To address the complains of the car sellers, the government of Country X proposes the tax to be levied on car buyers instead of car sellers. Under what condition will the sellers bear a larger tax burden than buyers? Explain whether the new proposal can successfully reduce the tax burden of car sellers.
tax on buyers
Consider a market where supply and demand curves are given by Q = 4P and Q = 12 - 2P. Calculate the equilibrium price and quantity in this market. Now consider a government that collects a unit tax of 0.2 liras for every unit of good sold in the market from the producers. What is the new supply curve? What is the new market equilibrium quantity? What is the price that consumers pay? What is the price producers get? What is the tax incidence on consumers? producers?
9. Effect of a tax on buyers and sellers The following graph shows the daily market for wine when the tax on sellers is set at $0 per bottle. Suppose the government institutes a tax of $40.60 per bottle, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on 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. 200 PRICE (Dollars per bottle) 160 Supply 140 120 100 14 80 Demand 60 40 20 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Bottles of wine) 180 0 Before Tax After Tax Graph Input Tool…
Complete the following table, given the information presented on the graph. Result Price producers receive before tax Equilibrium quantity after tax Per-unit tax $ Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept A B F Tax revenue after the tax is imposed Producer surplus before the tax is imposed Consumer surplus after the tax is imposed U с U D E U
3. Suppose the market equilibrium price for Kindles are $50 each. Using a supply and demand graph, illustrate the effect of an addition of a $10 per-unit unit tax on Kindles (imposed on sellers), where the entire tax incidence is equally split between buyers and sellers. Point out the following before and after the excise tax: a. Consumer surplus b. Producer surplus c. Tax revenue d. Deadweight loss
ut of 60 Submit All < Question 21 of 60 (Figure: Effects of Excise Tax) Based on the graph, after the excise tax is placed on the product, the producer surplus is + tax Do G. Do O CFD. ACFG. О ВЕFC. O АЕВ. Activate Windows Go to Seings t ateWzco m.
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Suppose an additional "special" tax of $0.10 per litre is imposed on the sale of gasoline in one province. Prior to the tax the price was $1.30 per litre and 10 million litres of gasoline are sold per day. After imposition of the tax, the new equilibrium price and quantity are $1.38 per litre and 9.6 million litres per day. What is the direct burden of this "special" tax?
Suppose Luke values a scoop of Italian gelato at $4. Leia values a scoop of Italian gelato at $6. The pre-tax price of a scoop of Italian gelato is $2. The government imposes a per unit tax of $3 on each scoop of Italian gelato, and the price rises to $5. The deadweight loss from the tax is a- $4. b- $2. c- $1. d- $3.