The following graph input tool shows the market for cigarettes. The orange curve represents supply, and the blue curve represents demand. Note: You will not be graded on any changes you make to this graph. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dolars per canon) QUANTITY (Thousands of cartons) Graph Input Tool Market for cigarettes cartons) 25 Demand Price (Dollars per carton) 15 Supply Price (Dollars per carton) Tax (Dollars per carton) To see the impact of the tax, enter the value of the tax in the Tax field. By entering the after-tax equilibrium quantity in the corresponding box, you will move the green line to the after-tax equilibrium. By entering 0 in the Tax field, you will see a tax wedge between the price buyers pay and the price sellers receive. When the government imposes a $4-per-carton tax on suppliers, the equilibrium quantity of cigarettes is collects in tax revenue. $100,000 $160,00 $240,000 OR $320,000 The following graph shows the Laffer curve for several tax rates (20, 40, 50, 60, 80). and the government 50,000 cartons, 40,000 cartons, 30,000 cartons, OR 20,000 cartons 100 Tax Rate (Percent) Do graph and answer the questions and the fill in the blank too pls After the maximum revenue point, higher taxes lead to lower tax revenues, because O the decrease in tax revenue from the higher per-carton tax is outweighed by the inrcease in tax revenue due to the declining number of cartons sold. O the increase in tax revenue from the higher per-carton tax is outweighed by the increase in tax revenue due to the declining number of cartons sold. O the decrease in tax revenue from the higher per-carton tax is outweighed by the decrease in tax revenue due to the declining number of cartons sold. O the increase in tax revenue from the higher per-carton tax is outweighed by the decrease in tax revenue due to the declining number of cartons sold.
The following graph input tool shows the market for cigarettes. The orange curve represents supply, and the blue curve represents demand. Note: You will not be graded on any changes you make to this graph. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dolars per canon) QUANTITY (Thousands of cartons) Graph Input Tool Market for cigarettes cartons) 25 Demand Price (Dollars per carton) 15 Supply Price (Dollars per carton) Tax (Dollars per carton) To see the impact of the tax, enter the value of the tax in the Tax field. By entering the after-tax equilibrium quantity in the corresponding box, you will move the green line to the after-tax equilibrium. By entering 0 in the Tax field, you will see a tax wedge between the price buyers pay and the price sellers receive. When the government imposes a $4-per-carton tax on suppliers, the equilibrium quantity of cigarettes is collects in tax revenue. $100,000 $160,00 $240,000 OR $320,000 The following graph shows the Laffer curve for several tax rates (20, 40, 50, 60, 80). and the government 50,000 cartons, 40,000 cartons, 30,000 cartons, OR 20,000 cartons 100 Tax Rate (Percent) Do graph and answer the questions and the fill in the blank too pls After the maximum revenue point, higher taxes lead to lower tax revenues, because O the decrease in tax revenue from the higher per-carton tax is outweighed by the inrcease in tax revenue due to the declining number of cartons sold. O the increase in tax revenue from the higher per-carton tax is outweighed by the increase in tax revenue due to the declining number of cartons sold. O the decrease in tax revenue from the higher per-carton tax is outweighed by the decrease in tax revenue due to the declining number of cartons sold. O the increase in tax revenue from the higher per-carton tax is outweighed by the decrease in tax revenue due to the declining number of cartons sold.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
TOPIC: The Laffer Curve
Transcribed Image Text:The following graph input tool shows the market for cigarettes. The orange curve represents supply, and the blue curve represents demand.
Note: You will not be graded on any changes you make to this graph. Once you enter a value in a white field, the graph and any corresponding
amounts in each grey field will change accordingly.
PRICE (Dolars per canon)
QUANTITY (Thousands of cartons)
Graph Input Tool
Market for cigarettes
cartons)
25
Demand Price
(Dollars per carton)
15
Supply Price
(Dollars per carton)
Tax
(Dollars per carton)
To see the impact of the tax, enter the value of the tax in the Tax field. By entering the after-tax equilibrium quantity in the corresponding box, you
will move the green line to the after-tax equilibrium. By entering 0 in the Tax field, you will see a tax wedge between the price buyers pay and the
price sellers receive.
When the government imposes a $4-per-carton tax on suppliers, the equilibrium quantity of cigarettes is
collects
in tax revenue.
$100,000 $160,00 $240,000 OR $320,000
The following graph shows the Laffer curve for several tax rates (20, 40, 50, 60, 80).
and the government
50,000 cartons,
40,000 cartons,
30,000 cartons,
OR 20,000
cartons
100
Tax Rate (Percent)
Do graph and
answer the questions
and the fill in the
blank too pls
After the maximum revenue point, higher taxes lead to lower tax revenues, because
O the decrease in tax revenue from the higher per-carton tax is outweighed by the inrcease in tax revenue due to the declining number of
cartons sold.
O the increase in tax revenue from the higher per-carton tax is outweighed by the increase in tax revenue due to the declining number of
cartons sold.
O the decrease in tax revenue from the higher per-carton tax is outweighed by the decrease in tax revenue due to the declining number of
cartons sold.
O the increase in tax revenue from the higher per-carton tax is outweighed by the decrease in tax revenue due to the declining number of
cartons sold.
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