The data for five-kilo boxes of lobsters are given in the table below. Quantity Supplied (before tax) Quantity Supplied (after tax) Price $90 100 110 120 130 140 Quantity Demanded 890 880 870 Price: 860 850 840 850 860 870 880 890 900 a) Before the tax, what are the equilibrium price and quantity? Price: $ 110: Quantity: 870 b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per-unit excise tax is put on the product. c) What are the new equilibrium price and quantity? 850 860 870 880 Quantity: d) What portion of the $20-per-unit excise tax is paid by the seller, and what portion is paid by the consumer? Paid by seller: %; Paid by consumer: %
The data for five-kilo boxes of lobsters are given in the table below. Quantity Supplied (before tax) Quantity Supplied (after tax) Price $90 100 110 120 130 140 Quantity Demanded 890 880 870 Price: 860 850 840 850 860 870 880 890 900 a) Before the tax, what are the equilibrium price and quantity? Price: $ 110: Quantity: 870 b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per-unit excise tax is put on the product. c) What are the new equilibrium price and quantity? 850 860 870 880 Quantity: d) What portion of the $20-per-unit excise tax is paid by the seller, and what portion is paid by the consumer? Paid by seller: %; Paid by consumer: %
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer C and D.
Transcribed Image Text:ctivity
Ac
411
The data for five-kilo boxes of lobsters are given in the table below.
Quantity Supplied
(before tax)
Quantity Supplied
(after tax)
Price
$90
100
110
120
130
140
Quantity
Demanded
890
880
Price:
870
860
850
840
850
860
870
880
890
900
870
850
860
870
880
a) Before the tax, what are the equilibrium price and quantity?
Price: $
110: Quantity:
b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per-unit excise tax is put on the
product.
c) What are the new equilibrium price and quantity?
: Quantity:
d) What portion of the $20-per-unit excise tax is paid by the seller, and what portion is paid by the consumer?
Paid by seller:
1%; Paid by consumer:
%
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