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. 50 40 35 Supply 30 25 A Demand 10 5 40 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of shoes) PRICE (Dollars per pair) 45 0 Before Tax After Tax Buyers Sellers Tax Burden (Dollars per pair) Graph Input Tool Elasticity Market for Shoes The burden of the tax falls more heavily on the Quantity (Pairs of shoes) Demand Price (Dollars per pair) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay (Dollars per pair) 25.00 Price Sellers Receive (Dollars per pair) (Pairs of shoes) 50 10 75.00 elastic side of the market. Supply Price (Dollars per pair) Supply Shifter Tax on Sellers (Dollars per pair) Using the data you entered in the previous table, calculate the tax burden that falls on buyers and 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. (?) 17.00 0.00
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. 50 40 35 Supply 30 25 A Demand 10 5 40 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of shoes) PRICE (Dollars per pair) 45 0 Before Tax After Tax Buyers Sellers Tax Burden (Dollars per pair) Graph Input Tool Elasticity Market for Shoes The burden of the tax falls more heavily on the Quantity (Pairs of shoes) Demand Price (Dollars per pair) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay (Dollars per pair) 25.00 Price Sellers Receive (Dollars per pair) (Pairs of shoes) 50 10 75.00 elastic side of the market. Supply Price (Dollars per pair) Supply Shifter Tax on Sellers (Dollars per pair) Using the data you entered in the previous table, calculate the tax burden that falls on buyers and 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. (?) 17.00 0.00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text: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.
PRICE (Dollars per pair)
2 2 2 2 2 2 2 2 O
50
40
35
Supply
30
25
#
15
Demand
10
5
45
0
I
0 10 20 30 40 50 60 70 80 90 100
QUANTITY (Pairs of shoes)
Before Tax
After Tax
Buyers
Sellers
Graph Input Tool
Market for Shoes
Quantity
(Pairs of shoes)
Tax Burden
(Dollars per pair) Elasticity
Demand Price
(Dollars per pair)
The burden of the tax falls more heavily on the
Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
Price Buyers Pay
(Dollars per pair)
Price Sellers Receive
(Dollars per pair)
(Pairs of shoes)
50
25.00
10
75.00
elastic side of the market.
Supply Price
(Dollars per pair)
Supply Shifter
Tax on Sellers
(Dollars per pair)
Using the data you entered in the previous table, calculate the tax burden that falls on buyers and 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.
17.00
0.00
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