(Table: Market for Fried Cheesecake) The government decides to tax fried cheesecake at a rate of $0.30 per cheesecake and collect the tax from buyers. According to the table below, after paying the tax, producers will receive S per cheesecake, and they will sell cheesecakes after the tax. Table: The Market for Fried Cheesecake Price (S/unit) 3.10. 3.20 3.30 3.40 3.50 a. 3.50, 5,000 Ob. 3.30, 7,000 OC 320, 5,000 Od. 3.10; 3,000 Quantity Demanded(units) 9,000 8,000 7,000 6,000 5,000 Quantity Supplied (units) 3,000 5,000 7,000 9,000 11,000

(Table: Market for Fried Cheesecake) The government decides to tax fried cheesecake at a rate of $0.30 per cheesecake and collect the tax from buyers. According to the table below, after paying the tax, producers will receive S per cheesecake, and they will sell cheesecakes after the tax. Table: The Market for Fried Cheesecake Price (S/unit) 3.10. 3.20 3.30 3.40 3.50 a. 3.50, 5,000 Ob. 3.30, 7,000 OC 320, 5,000 Od. 3.10; 3,000 Quantity Demanded(units) 9,000 8,000 7,000 6,000 5,000 Quantity Supplied (units) 3,000 5,000 7,000 9,000 11,000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...

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Figure: The Market for Lattes Price (per latte) $4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 200 S D 1,800 600 1,000 1,400 Quantity of lattes (in cups) 2. Figure: The Market for Lattes) If the government assesses a tax of $0.75 on sellers of lattes, a. What is the consumer price and producer price after tax was imposed? b. What is the new PS?
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