Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the supply curve before tax and S after tax is the supply curve after the tax. Use the graph to answer the following questions: 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 price 5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity The equilibrium price in the market before the tax is imposed is $ The price paid by buyers after the tax is imposed is $ The price sellers receive after the tax is imposed is $ The amount of the tax per unit is $ Buyers pay $ S after tax Sellers pay $ of the tax per unit. of the tax per unit. S The government tax revenue is $ The deadweight loss of the tax is D

Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the supply curve before tax and S after tax is the supply curve after the tax. Use the graph to answer the following questions: 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 price 5 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity The equilibrium price in the market before the tax is imposed is $ The price paid by buyers after the tax is imposed is $ The price sellers receive after the tax is imposed is $ The amount of the tax per unit is $ Buyers pay $ S after tax Sellers pay $ of the tax per unit. of the tax per unit. S The government tax revenue is $ The deadweight loss of the tax is D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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