Suppose the Canadian government has decided to place anexcise tax of $20 per tire on producers of automobile tiresExcise taxes are also called sales or commodity taxes150Previously, there was no excise tax on automobile tires. As140a result of the excise tax, producers of tires, such as130Bridgestone and Michelin, are going to alter theirtire pricesThe graph illustrates the demand and supply curves for120SupplyDemand110100automobile tires before the excise tax.90Please shift the appropriate curve or curves on the graph todemonstrate the new equilibrium8070What is the price consumers pay for a tire post tax? Round60to the nearest 10500245678910Quantity of tires100price paid byconsumers:Price per tireco What is the price producers receive for a tire net of taxes?Round to the nearest 1050price received by producers:

The initial equilibrium is at e where S=D and the Price= $90 and quantity= 40 units. Due to the…

Answered: Suppose the Canadian government has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price (dollars per pizza) 18 8 6 A 2 S+ tax on sellers S D 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizzas) The figure above shows the pizza market in the city of Pepperoniville. If the government imposes the sales tax shown in the figure on sellers, then the price the buyer pays for pizza is $ and the price the seller receives for the pizza is $ Just enter value. Do not include the "$" sign.
The current market price of bananas is $1 per pound. Use a graph and words to show the effect of a ten cent tax on each pound of bananas. Insert your own numbers into your graph. Be sure to indicate the new price paid by consumers, the new price received by sellers, and the new quantity sold.
li, GRAPH O SETTINGS Tax Burden of Reset ($) Price Tax imposed on: Supply Demand 90 $90.00 Excise Tox (0 - $20) 0.00 80 70 Demand Perfectly Inelastic Relatively Elastic 60 Relatively Elastic $50.00 40 Supply Less Elastic Perfectly Elastic 30 Perfectly Elastic 20 10 CALCULATIONS 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000
Price (dollars per hour) 7.00 6.60 6.00 5.60 5.00 0 1 2 3 4 5 6 7 8 Quantity (thousands of frisbees) Figure 6.3.1 OB) $5.60. S + tax Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed. On each frisbee, the sellers' burden of the tax is OA) $0.60. OC) $0.40. S OD) $6.60.
Question 39 Please refer to the description of a tax on a market, represented by the graphic What is the price that the seller receives (net of tax) after the tax is imposed?
Suppose that a tax of $6.00 is imposed on this market, what is the tax revenue?
A sales tax is imposed on good A. The supply of good A is not perfectly elastic or perfectly inelastic. Suppose that the demand for good A becomes more inelastic. (a) Will the tax burden on sellers increase or decrease? (b) Will the DWL increase or decrease?
The table shows the market for chocolate bars Quantity demanded Quantity supplied (thousands per day) Price (dollars per chocolate bar) 1.10 1.20 1.30 1.40 1.50 50 5 40 10 30 15 20 20 10 25 A tax of $0.30 per chocolate bar is imposed on sellers What is the new price of a chocolate bar? Who pays the tax? The new price of a chocolate bar following the tax is $ The tax is A. paid totally by the buyer B. paid totally by the seller C. split between the buyer and the seller
where do i put the government price lines one and two
Price (dollars per pizzo) 20 18 16 14 12 10 8 aa 6 4 NA 2 S+ tax on sellers S 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizzas) The figure above shows the pizza market in the city of Pepperoniville. If the government imposes the sales tax shown in the figure on sellers, then the tax revenue is $[value1]. Just enter value. Do not include the "$" sign.
a. $7 b. $3 c. Between $5 and $7 d. Between $3 and $5 7 PRICE EL 3 60 100 fer to Figure 6-11. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is posed? QUANTITY
If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal, producers receive net of the tax will equal and the price that 12 S 11 10 B 6 10 20 30 40 50 60 70 80 90

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