Tax sellers TAX ON SELLERS WORKSHEETBelow, you are provided with the demand and supply curves for burritos. You willuse this information to analyze the effect of a tax that is levied on the sellers ofburritos. You will calculate the consumer surplus, producer surplus, and totalsurplus generated in this market before and after the introduction of the tax. Youwill also identify the deadweight loss associated with the tax.$14$12Supply$10$8$6$4Demand$2100200300400500600Quantity of BurritosPart 1: Identify the equilibrium price of a burrito and the equilibrium quantity ofburritos that are bought and sold at that price.Part 2: Identify the amount of consumer surplus that is generated by this market.Part 3: Identify the amount of producer surplus that is generated by this market.21Price Part 4: Identify the amount of total surplus that is generated by this market.Part 5: Suppose that the government imposes a tax of $3 per burrito on sellers ofburritos. Construct the shifted supply curve that results from the imposition of thistax.Part 6: Suppose that the government imposes a tax of $3 per burrito on sellers ofburritos. What price do consumers pay for a burrito after this imposition of this tax?And what price do sellers receive for a burrito after this imposition of this tax?Part 7: Suppose that the government imposes a tax of $3 per burrito on sellers ofburritos. Identify the amount of consumer surplus that is generated by this marketafter the imposition of this tax.Part 8: Suppose that the government imposes a tax of $3 per burrito on sellers ofburritos. Identify the amount of producer surplus that is generated by this marketafter the imposition of this tax.Part 9: Suppose that the government imposes a tax of $3 per burrito on sellers ofburritos. Identify the amount of tax revenue that the government collects.Part 10: Suppose that the government imposes a tax of $3 per burrito on sellers ofburritos. Identify the amount of total surplus that is generated by this market afterthe imposition of this tax.Part 11: Suppose that the government imposes a tax of $3 per burrito on sellers of burritos.Identify the amount of deadweight loss associated with this tax.22

Demand for a commodity is the desire backed by ability and willingness of the consumer to pay for…

TAX ON SELLERS WORKSHEET Below, you are provided with the demand and supply curves for burritos. You will use this information to analyze the effect of a tax that is levied on the sellers of burritos. You will calculate the consumer surplus, producer surplus, and total surplus generated in this market before and after the introduction of the tax. You will also identify the deadweight loss associated with the tax. $14 $12 Supply $10 $8 $6 $4 Demand $2 100 200 300 400 500 600 Quantity of Burritos Part 1: Identify the equilibrium price of a burrito and the equilibrium quantity of burritos that are bought and sold at that price. Part 2: Identify the amount of consumer surplus that is generated by this market. Part 3: Identify the amount of producer surplus that is generated by this market. Price

TAX ON SELLERS WORKSHEET Below, you are provided with the demand and supply curves for burritos. You will use this information to analyze the effect of a tax that is levied on the sellers of burritos. You will calculate the consumer surplus, producer surplus, and total surplus generated in this market before and after the introduction of the tax. You will also identify the deadweight loss associated with the tax. $14 $12 Supply $10 $8 $6 $4 Demand $2 100 200 300 400 500 600 Quantity of Burritos Part 1: Identify the equilibrium price of a burrito and the equilibrium quantity of burritos that are bought and sold at that price. Part 2: Identify the amount of consumer surplus that is generated by this market. Part 3: Identify the amount of producer surplus that is generated by this market. Price

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 8MC

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