Please correct answer and don't use hand rating and don't use Ai solution The accompanying graphs depict the market for bags ofpotato chips, which is currently in equilibrium at a price of$1.33 per bag and a quantity of 5.33 million bags. Supposethat, in an attempt to lower blood pressure and reducehealthcare costs, the government imposes a $1.00 excise taxon potato chips.5.04.54.0a. Suppose the government levies this tax on manufacturersfor each bag of potato chips they produce. Shift theappropriate curve or curves to illustrate this.Price ($ per bag)3.53.02.52.01.51.0Supply0.5Demand0.00123456789 10Quantity (millions of bags)

Tax on producer shifts supply curve leftwards:Price paid by consumer = $2Price received by seller =…

Answered: The accompanying graphs depict the…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 7PA

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In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
The table below presents the annual market for sofas in Akron, Ohio. Suppose the state government imposes a $250 excise tax on every sofa sold to be paid by customers at the point of sale. Market for Sofas Price (dollars) $1,240 1,180 1,120 1,060 1,000 940 880 820 760 780 Quantity of Sofas Demanded INO 200 230 260 290 320 350 380 410 449 M 470 Quantity of Sofas Supplied 300 TYGO 280 260 240 220 200 sofas 180 160 140 120 Quantity of Sofas Demanded with Excise Tax 50 80 118 140 WACH178 200 230 260 290 320 Instructions: Enter your answers as a whole number. a. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron? b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? $ c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? sofas d. What is the total amount of revenue collected by the government from the excise tax on sofas? $
Alow-incomecountrydecidestosetapriceceiling on bread so it can make sure that bread is affordable to the poor.Table 3.11 provides the conditions of demand and supply. What are the equilibrium price and equilibrium quantity before the price ceiling? What will the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at $2.40? At $2.00? At $3.60?
suppose that the local government of Columbus decides to institute a tax on seltzer consumers. Before the tax, 20,000 packs of seltzer were sold every week at a price of $10 per pack. After the tax, 15,000 packs of seltzer are sold every week; consumers pay $12 per pack (including the tax), and proceeds nrecieve $5 per pack.
11. Consider public policy aimed at smoking. a. Studies indicate that the price elasticity ofdemand for cigarettes is about 0.4. If a packof cigarettes currently costs $2 and thegovernment wants to reduce smoking by20 percent, by how much should it increasethe price? b. If the government permanently increasesthe price of cigarettes, will the policy have alarger effect on smoking one year from nowor five years from now? c. Studies also find that teenagers have ahigher price elasticity than do adults. Whymight this be true?
Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to $1 per liter is levied on soft drink sellers, please answer the following questions: a. The new equilibrium quantity of soft drinks bought and sold would be ___________ million liters. b. The new equilibrium price paid by buyers of soft drinks would be $__________ per liter. c. The new equilibrium price received by sellers (after-tax) would be $__________ per liter.
1. Assume that the demand for cigarettes is Qd=1600-30P and the supply of cigarettes is Qs=1400+70P: a. Calculate the equilibrium price and quantity and show them on a supplyand demand diagram. b. Suppose the government levies a $2 tax for each unit of cigarettes sold.Draw this on the diagram and calculate the new equilibrium price andquantity. c. Calculate the price elasticity of demand given these two price andquantity points. Is the demand for cigarettes price elastic or inelastic onthis part of the demand curve? Interpret the elasticity in words (i.e. If theprices rises by 10%, by what percentage will consumption fall?) d. On a graph, identify the tax revenue generated by this tax. e. Indicate each area on the graph with a letter and show in a table theconsumer surplus and the producer surplus before and after the tax. Also,indicate the deadweight loss associated with this tax. f. If your policy advisor boss wanted you to provide him/her witharguments in favor of this cigarette…
i neeed help with this one i keep getting it wrong. it is a macroeconmics question
Suppose a local government votes to impose an excise tax of $0.90 per bottle on the sales of bottled water. (Assume that all bottles are identical and residents cannot shop elsewhere.) Before the tax the equilibrium price and quantity are $1.20 and 2000 bottles per day. After the tax is imposed, market equilibrium adjusts to a price of $1.70 and quantity of 1300 bottles per day. a. Draw the supply and demand diagram before and after the excise tax is imposed. 1.) Using the line drawing tool, plot the original and new supply curves and label the lines properly. 2.) Using the point drawing tool, indicate the original and new equilibrium points and label these points properly. Carefully follow the instructions above, and only draw the required objects. Price ($ per bottle) 3.00 2.80- 2.60- 2.40- 2.20- 2.00- 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20- 0.00+ 0 1000 2000 Quantity (bottles per day) 10 3000
Assume the government imposes a $0.75 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed. Price (per bottle) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 Market for Soda 2 3 1 5 6 S Quantity (billions of bottles) S 0 7 8 Instructions: Round your answers for price to 2 decimal places. Enter your answers for quantity as a whole number a. Before the tax is imposed, the equilibrium price is $ per bottle and the equilibrium quantity is b. After the excise tax is imposed, consumers pay a price of $ c. After the excise tax is imposed. the price (or amoum) producers keep after the tax is paid is $ d. After the tax is imposed, the equilibrium quantity is billion bottles. e. The government is able to collect $ billion of tax revenue from the tax per bottle per bottle billion bottles.
Assume the government imposes a $0.75 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed. Price (per bottle) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 Market for Soda 2 3 1 5 6 S Quantity (billions of bottles) S 0 7 8 Instructions: Round your answers for price to 2 decimal places. Enter your answers for quantity as a whole number a. Before the tax is imposed, the equilibrium price is $ per bottle and the equilibrium quantity is b. After the excise tax is imposed, consumers pay a price of $ c. After the excise tax is imposed. the price (or amount) producers keep after the tax is paid is $ d. After the tax is imposed, the equilibrium quamtity is billion bottles. e. The government is able to collect $ billion of tax revenue from the tax per bottle per bottle billion bottles.
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 30,000 cases of cola were sold every week at a price of $6 per case. After the tax, 23,000 cases of cola are sold every week; consumers pay $9 per case, and producers receive $4 per case (after paying the tax). The amount of the tax on a case of cola isper case. Of this amount, the burden that falls on consumers isper case, and the burden that falls on producers isper case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. True False

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