Suppose a $1 excise or commodity tax is placed on the purchasers of cans of soda. Use the graph to illustrate the impact this tax would have on the soda market and answer the questions. Be certain to shift the entire curve, endpoint to endpoint. Price per can (5) 10 9 8 7 3 2 1 0 deadweight loss: $ 0 012345678 9 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Calculate the deadweight loss of the tax. Enter the answer in thousands. Supply Demand deadweight loss: S 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Demand Calculate the deadweight loss of the tax. Enter the answer in thousands. The tax would affect a household's Choose the answer that best describes the impact this tax would have on a household's economic income and whether it would cause a large change in the household's consumption of soda. This sort of change in behavior is called tax shifting. uses side, but tax shifting is not likely to occur. sources side, but tax shifting is likely to occur. O sources side, but tax shifting is not likely to occur. O uses side, but tax shifting is likely to occur.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose a $1 excise or commodity tax is placed on the purchasers of cans of soda. Use the graph to illustrate the impact this tax
would have on the soda market and answer the questions. Be certain to shift the entire curve, endpoint to endpoint.
Price per can (5)
10
9
8
7
3
2
1
0
1
deadweight loss: $
0123456789 10 11 12 13 14 15 16 17 18 19 20
Cans of soda per day (in tens of thousands)
Calculate the deadweight loss of the tax. Enter the answer in thousands.
Supply
Demand
deadweight loss: $
0123456789 10 11 12 13 14 15 16 17 18 19 20
Cans of soda per day (in tens of thousands)
Demand
Calculate the deadweight loss of the tax. Enter the answer in thousands.
The tax would affect a household's
Choose the answer that best describes the impact this tax would have on a household's economic income and whether it would
cause a large change in the household's consumption of soda. This sort of change in behavior is called tax shifting.
O uses side, but tax shifting is not likely to occur.
O sources side, but tax shifting is likely to occur.
O sources side, but tax shifting is not likely to occur.
uses side, but tax shifting is likely to occur.
Transcribed Image Text:Suppose a $1 excise or commodity tax is placed on the purchasers of cans of soda. Use the graph to illustrate the impact this tax would have on the soda market and answer the questions. Be certain to shift the entire curve, endpoint to endpoint. Price per can (5) 10 9 8 7 3 2 1 0 1 deadweight loss: $ 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Calculate the deadweight loss of the tax. Enter the answer in thousands. Supply Demand deadweight loss: $ 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Demand Calculate the deadweight loss of the tax. Enter the answer in thousands. The tax would affect a household's Choose the answer that best describes the impact this tax would have on a household's economic income and whether it would cause a large change in the household's consumption of soda. This sort of change in behavior is called tax shifting. O uses side, but tax shifting is not likely to occur. O sources side, but tax shifting is likely to occur. O sources side, but tax shifting is not likely to occur. uses side, but tax shifting is likely to occur.
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