Price242220+A18Supply16B14C12F10DHGJ64KMDemand2+3 6 9 12 15 18 21 24 27 30 33 36 39QuantitySuppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in the abovefigure. The Gov. R. is equal to the following areaВB+DD+FJ+G

An excise tax is a per unit tax on commodity.

Answered: Suppose the government imposes a $10…

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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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
Illustrate, with the use of an appropriate figure, what the deadweight loss from the imposition of a sugary tax would look like.
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The figure below shows a market of good C. Suppose that the government levied a tax on C. If the size of the tax is 10, how much is the after-tax equilibrium quantity? If the after-tax equilibrium quantity is 50, how much is the size of the tax? Quantity if tax = 10: Tax if quantity is 50:
How does a Tax on Production affect a negatively sloped Demand curve or the Supply Curve? The supply curve shifts to the Left The supply curve shifts to the Right There is no shift, only movement along the Supply Curve The demand curve shifts to the left
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?
In which of these scenarios is the burden of the tax greater on buyers than on sellers? AA BB C C DD B D
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The following graph shows the market for the long-distance bus rides. In the absence of taxes, the equilibrium price of a ride is $5 and the equilibrium quantity is 10 million rides. Suppose that regulator levies an excise tax on bus service providers. The amount of excise tax equals $2 per ride. How much will bus service providers get per ticket after the tax is imposed? $5.50 $4 $4.50 $5
Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.6 and 0.8 respectively. a. Suppose the government imposes a per-unit tax on the cigarette sellers. Who, buyers or sellers, would share a heavier tax burden? Explain your answers without calculation. b. Suppose the government imposes a per-unit tax of $40 on the cigarette sellers. By how much would buyers and sellers of cigarettes share the tax burden respectively? Show your calculation. c. Suppose many small sellers, such as newsstands, complain the heavy tax burden borne by them. Would it be better to these small sellers if the government decides to impose a $20 per-unit tax on both the buyers and the sellers of cigarette? Explain.
The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 26.00 18.00 10.00 Demand Result Per-unit tax B D F 33 U 20 E 36 QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. $ Price consumers pay before tax $ Equilibrium quantity before tax Supply Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Producer surplus after the tax is imposed Consumer surplus after the tax is imposed Tax revenue after the tax is imposed A U B 0 0 с 0 0 D 0 0 E 0 F 0 0

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Suppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in the above figure. The Gov. R. is equal to the following area В В+D D+F J+G