The graph illustrates the demand and supply for pinckneys (a hypothetical product). The pre-tax equilibrium is marked by a black point (plus symbol). Following the imposition of a tax by the government, the market transitions to an after-tax scenario, indicated by the grey points (star symbol).### Graph Details:- **Axes**: - The x-axis represents the quantity of pinckneys. - The y-axis shows the price in dollars per pinckney.- **Curves**: - The blue line represents the demand curve. - The orange line depicts the supply curve.- **Equilibrium Points**: - **Pre-tax Equilibrium**: Denoted by a black plus symbol at point E with a quantity of 16 and a price of $18. - **After-tax Scenario**: - Producers receive a lower price of $11 (point F). - Consumers pay a higher price of $21 (point C). - The equilibrium quantity decreases to 12.- **Areas**: - A green triangle A is formed above point C. - A rectangle B is shaded in purple below point D. - A triangle F is located beneath point F, indicating potential loss or inefficiency due to the tax.The introduction of the tax shifts the supply curve, impacting the equilibrium and creating an economic burden. The welfare loss or deadweight loss is represented by the colored areas illustrating the reduced market efficiency. **Instruction for Users:**Complete the following table with the values derived from the corresponding graph:| **Result** | **Value** ||----------------------------------------|-----------|| Per-unit tax | $ || Equilibrium quantity before tax | || Price producers receive before tax | $ |**Graph Analysis:**Refer to the graph provided (not displayed here) to determine the relevant economic concepts. Once identified, please use the table below to indicate which areas on the graph correspond to each concept by checking the applicable boxes.| **Concept** | **A** | **B** | **C** | **D** | **E** | **F** ||----------------------------------------------------|-------|-------|-------|-------|-------|-------|| Producer surplus **after** the tax is imposed | | | | | | || Consumer surplus **after** the tax is imposed | | | | | | || Tax revenue **after** the tax is imposed | | | | | | |**Instructions:**- Carefully analyze the graph to understand the areas that correspond to each economic concept listed.- Place a checkmark in the appropriate boxes once you have determined the correct areas.- Consider reviewing the related concepts of surpluses and tax implications to ensure accurate completion.

Consumer surplus is the difference between what the consumer is willing to pay and the amount what…

Answered: The following graph represents the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 26.00 18.00 10.00 Demand Result Per-unit tax B D F 33 U 20 E 36 QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. $ Price consumers pay before tax $ Equilibrium quantity before tax Supply Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Producer surplus after the tax is imposed Consumer surplus after the tax is imposed Tax revenue after the tax is imposed A U B 0 0 с 0 0 D 0 0 E 0 F 0 0
In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is tax revenue out of this tax? (Remember that the tax does not change the demand and supply curves).
Price 20 18 16 14 12 10 х $1.200 0 300 400 500 $2.000 S1 SO Quantity Assume that the market in the graph above is at an initial equilibrium price of $10 and an equilibrium quantity of 500 units. If the government decides to add a $4 per-unit tax on this good, it will be able to collect the following amount of tax revenue: Demand 1000
1.Given the following information Qd= 240 – 5p Qs= P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. What is the buyer’s price after tax?
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The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. What is the amount of the tax, as measured along the y axis? PC + PS Pe – PS PC – PS PC – P* Pe + PS
Doyle and Samphantharak (2008) find that when a 5% gas tax is implemented, prices consumers pay for gas increase by about 4%. What role does demand elasticity play in determining the size of this price change? That is, under what demand elasticity cases would the price change be closer to 5%, or closer to 0%? Illustrate and explain using supply-and-demand graph(s)..
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Please answer both questions 2e - parts 2 and 3
Question 4 Consider the following supply and demand functions in a market: p=12-2Q p=2Q Suppose the government imposes a tax rate t*=4 on demand. Compute the total legal tax burden (incidence) on producers (after tax t* is imposed). (Enter your answer to one integer. For "8", you would write 8).
N7
Draw a diagram where sellers have to pay a $X tax to the Government on each unit that they sell. Then this tax is decreased to $Y. Draw a demand and supply diagram showing this tax reduction causing an increase in Government taxation revenue. Please provide a written explanation for your diagram and discuss its policy implications. ( maximum word limit: 250 words)

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