Table: The market for taxi rides Fare (per ride) $7.50 S 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 5 6 7 89 10 11 12 13 14 15 Quantity of rides (millions per year) Look at the table "The Market for Taxi Rides". If a tax of $2.00 per taxi ride is implemented in this market, how many taxi rides will be taken? O 10 million 6 million 8 million 9 million

Table: The market for taxi rides Fare (per ride) $7.50 S 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 5 6 7 89 10 11 12 13 14 15 Quantity of rides (millions per year) Look at the table "The Market for Taxi Rides". If a tax of $2.00 per taxi ride is implemented in this market, how many taxi rides will be taken? O 10 million 6 million 8 million 9 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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H The figure below shows the market for snowboards in the state of Colorado, The Colorado state legislature has imposed a sales of tax on each snowboard sold. Assume that the pre-tax price of a snowboard was $50. After the tax, consumers are paying $55 per snowboard while firms are receiving $40 per snowboard. 110 3-10 $10 X Quality (0) The amount of the tax on each unit of the good that is sold is $30 $15 $5 $20 Dead $10
9) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. $30 $20 $10 Price (P) of airline tickets (in dollars per ticket) How much of the per-ticket tax is paid by passengers? $40 230 200 190 2850 3000 Swith tax Sno tax D Figure 14 Image author created Quantity (Q) of airline tickets (thousands per day)
On the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in these cases. (Hint: Remember that the area of a triangle is equal to x Base × Height. In the case of a deadweight loss triangle found on the graph input tool, the base is the amount of the tax and the height is the reduction in quantity caused by the tax.) 2400 2160 1920 Deadweight Loss 1680 1440 1200 960 720 480 240 10 20 30 40 50 60 70 80 90 100 TAX (Dollars per bottle) As the tax per bottle increases, deadweight loss DEADWEIGHT LOSS (Dollars)
Question 26 Figure #2 Iprice 10 Dafer 1OR 10 20 30 40 50 70 Refer to Figure #2. After the tax is imposed, what is the effective price that producers receive?
Table 2: Market for Skis P 0 4 8 12 16 Qd Qs 15 0 12 9 6 3 20 0 6 12 12 16 20 2. Consider Table 2. a. What is the equilibrium price and quantity? b. What is the CS, PS, and TS? C. If there is a $3 tax, what is the equilibrium price buyers pay, the price sellers receive, and the quantity?
$50 40 - 30- 2: 20 10 20 22 25 Number of Trips (1,000s per day) 5 10 15 е 3: This diagram shows the demand for trips across a bridge. If the price of crossing the bridge is $10.00 (which determines a quantity demanded of 20 trips in the graph), consumer surplus is ge 4: $44 $440 $400 $100
Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. Price 24 22- 20 18 Supply 16+ 14+ 12 F G 10+ H 6- 4- K M Demand 3 69 12 15 18 21 24 27 30 33 36 39 Quantity Refer to Figure 8-8. One effect of the tax is to O reduce producer surplus from $96 to $24. O create a deadweight loss of $72. O reduce consumer surplus from $180 to $72. All of the above are correct. 00 2.
The vertical distance between points A and B represents a tax in the market. 22- Price 222 20 18- 16 14 12- 22 10 8 9 Supply Demand 100 200 300 400 500 600 700 800 900 1000 Quantity Refer to Figure 8-6. Total surplus with the tax in place is
First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer handbags in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. PRICE (Dollars per handbag) 500 450 400 Demand 350 300 250 200 Before Tax Supply 150 100 50 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Handbags) + Equilibrium Consumer Surplus Producer Surplus ?
GRAPH ($) Price 90 $90.00 8288 288 2 80 70 60 50 40 30 20 10 0 $50.00 1.0 2.0 3.0 6.0 5.0 4.0 Surplus Measures 7.0 S 8.0 9.0 Off Quantity (thousands per week) 0 SETTINGS Tax imposed on: Excise Tax (0-$20) Demand Perfectly Inelastic Supply Less Elastic CALCULATIONS No Taxi With Tax Supply Relatively Elastic Perfectly Elastic Demand Price Paid $50.00 $50.00 0.00 Relatively Elastic Perfectly Elastic Quantity Reset 4,000 4,000 Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 thousand units (this corresponds to a vertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and there is no excise tax (set to $0). Use the Surplus Areas switch above the graph as needed.