The figure shows the market for tires. According to the figure, the governmentcollectsper month in total tax revenuePrice (dollars per tire)emO A. $2,000 millionS+ tax70OB. $1,200 million60O C. $600 million50D. $900 million40O E. None of the above answers is correct.30e As20t Ass1010 20 30 40 50 60 70Quantity (millions of tires per month)AR1O Time Remaining: 00:58:33NextompletedThis course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9eMacBook Pro

The figure shows the market for tires. According to the figure, the government collects per month in total tax revenue O A. $2,000 million B. $1,200 million C. $600 million O D. $900 million O E. None of the above answers is correct.

The figure shows the market for tires. According to the figure, the government collects per month in total tax revenue O A. $2,000 million B. $1,200 million C. $600 million O D. $900 million O E. None of the above answers is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The figure shows the market for tires. According to the figure, the government
collects
per month in total tax revenue
Price (dollars per tire)
em
O A. $2,000 million
S+ tax
70
OB. $1,200 million
60
O C. $600 million
50
D. $900 million
40
O E. None of the above answers is correct.
30
e As
20
t Ass
10
10 20 30 40 50 60 70
Quantity (millions of tires per month)
AR
1
O Time Remaining: 00:58:33
Next
ompleted
This course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e
MacBook Pro

Expert Solution

Step 1 TAX REVENUE

We can calculate the amount of revenue earned by the government by taxes with the following formula:

Tax Revenue = Tax per unit * Quantity of goods at the new equilibrium

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O out Figure 8-3 Price Pa P₂ P₁ a. Pl . b. P2 X -Tax- C. P3 - P2 d. P3 Figure 21 D B 92 Refer to Figure 8-3. What is the price sellers receive after the tax? D Quantity
A per unit tax is imposed on the seller that shifts the supply curve to the left. Ceteris paribus, the greater the elasticity of demand, the ______. Select all that apply. A. smaller is the burden of the tax on the consumers. B. larger is the burden of the tax on the consumers C. smaller is the burden of the tax on the producers D. larger is the burden of the tax on the producers
The largest source of revenue for the federal government is ? A.corporate income taxes. B. the sales tax C. excise taxes D. individual income taxes E. the value added tax
8....
In the diagram, consumer surpluses before and after the tax are ______ and ______, respectively. A + B; B A + B + C; A D + E + F; B B + C; A + B
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d. 25. Clear my choice Price P₁ P₂ C E GH The tax in the graph is equal to Select one: 2 S₂ Quantity O a. P₁-P4 O b. P2-P4 OC. P4-Ps O d. Answers (a) and (c) both measure the excise tax. O e. Answers (b) and (c) both measure the excise tax.
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QUESTION 10 Using the attached table, once the tax is implemented, the tax revenue will be be Quantity MB 520 525 530 535 540 545 550 164 160 156 152 148 144 140 136 MC 80 90 100 110 120 130 140 555 150 Note: MB designates the marginal benefit and reflects the values on the demand curve. MC is the marginal cost and designates the values on the supply curve. O $18,375, $1,750 $70, $35 O $36,750, $875 O $525, $1,750 MB-Tax (Amount producer receives) 94 90 86 and the deadweight loss will 82 78 74 70 66
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