The figure below represents the perfectly competitive market for pumpkins both before and after the imposition of a tax on suppliers, which is represented by the shift of the supply curve from Supply 1 to Supply 2. Price ($) 8.50 7.25 5.50 0 B 700 A 1,200 Supply 2 Supply 1 Demand Quantity of pumpkins Based on the figure above, who will pay a larger portion of the tax burden? a. Producers pay more of the tax burden than consumers Ob. Producers and consumers pay an equal amount of the tax burden c. Consumers pay more of the tax burden than producers Od. There isn't enough information to determine the distribution of the tax burden

The figure below represents the perfectly competitive market for pumpkins both before and after the imposition of a tax on suppliers, which is represented by the shift of the supply curve from Supply 1 to Supply 2. Price ($) 8.50 7.25 5.50 0 B 700 A 1,200 Supply 2 Supply 1 Demand Quantity of pumpkins Based on the figure above, who will pay a larger portion of the tax burden? a. Producers pay more of the tax burden than consumers Ob. Producers and consumers pay an equal amount of the tax burden c. Consumers pay more of the tax burden than producers Od. There isn't enough information to determine the distribution of the tax burden

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 7P

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A Quiz: CH5 Main Problem - You ha x b My Questions | bartleby + -> A yvcc.instructure.com/courses/2227256/quizzes/7072867/take/questions/143032293 Use the graph below to answer this question: Based on this graph, suppose the equilibrium price and quantity remain the same but the demand curve becomes steeper (more inelastic demand). What will that do to the consumer or producer surplus? $16 $12 6 It will increase the consumer surplus. It will reduce the producer surplus. O It will reduce the consumer surplus. O It will leave both surpluses unchanged. O It will increase the producer surplus. >
7.04 Review Suppose a tax of $20 is placed on televisions. If this market's supply and demand curves' are elastic, the burden of this tax falls on: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the sellers b the buyers both the sellers and the buyers.
If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?
1.The supply of meat is more elastic in the long run than in the short run. Ceteris paribus, as time goes by, the burden of a tax on cattle will be increasingly passed on to the: Group of answer choices Grocer Government Rancher Consumer
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 ?
1) Below is the demand and supply schedule for the market for personal chefs. These are chefs that are hired to come into the client’s home to prepare meals for them. Show all your calculations used to answer the following questions. d)calculate the excess demand or supply at the price of $35,$70,$25 and $65 e) If tax of 5$ imposed compute the consumer and producer tax burden Price per hour Qty supplied Qty demanded 20 0 29 25 1 26 30 3 23 35 5 20 40 7 17 45 9 14 50 11 11 55 13 9 60 15 7 65 17 5 70 19 3 75 21 1 80 23 0
Suppose that a tax of $6.00 is imposed on this market, what is the tax revenue?
The demand and supply equations for a product are: Q^d=300-6p and Q^x=-40+6p. . Determine the market Equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graph and explain . Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss
what is the deadweight loss due to a $2 tax? a) 200 b) none 50 100 e) 150 7- Domestic supply 6- Domestic Demand 500 Quantity 5. 4- 2- 1. 100 200 300 400
Demand A. $100 thousand B. $200 thousand OC. $600 thousand D. $800 thousand Supply 1 P= 50+ P=80-QD QD=80-P QS=2P-100 The equations above describe the demand and supply for Chef Emnie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of producer surplus?
Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What is the pass-through fraction of a tax on fanta to consumers? B. Assuming a tax of K12 is applied on each bottle of fanta, how much of this will be borne by producers. C. If the original price was K30, what would be the new equilibrium price?
The market for skateboards currently has no taxes. The equilibrium quantity is 5,000/month, and the equilibrium price is $40. The governor is considering placing a $10/skateboard tax on skateboard producers, and expects to raise $50,000/month in revenue. Is the governor correct? O No, because it doesn't matter whether the consumer or producer is taxed. O Yes, because producer and consumer responses will cancel out. O No, because the quantity produced and consumed will fall below 5,000/month once the tax is imposed. O Yes, because 5,000 x $10 = $50,000.