The graph below shows supply and demand curves before tax Price $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 I 0 14 28 42 1 Market Equilibrium 56 70 84 98 Quantity Supply-Demand 112 126 140 154 Calculate how much tax revenue the government will raise if it imposes a $15 tax on this good 168 182

The graph below shows supply and demand curves before tax Price $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 I 0 14 28 42 1 Market Equilibrium 56 70 84 98 Quantity Supply-Demand 112 126 140 154 Calculate how much tax revenue the government will raise if it imposes a $15 tax on this good 168 182

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

(Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph depicts a tax of with a corresponding deadweight loss of Price ($) 98765432 T X D 0 50 100 150 200 250 300 350 400 450 500 550 600 Quantity $6; $3 $3; $150 $6; 50 units $3; $75
Consider the market described by the graph below where the vertical distance between points A and B represents a tax in the market. 22 20 10 16 14 12 10 Price Demand 100 200 300 400 500 600 700 800 900 1000 Supply Quantity The per-unit burden of the tax on buyers is $16 and the tax results in a loss of $2700 in consumer surplus. $6 and the tax results in a loss of $900 in consumer surplus $6 and the tax results in a loss of $2700 in consumer surplus. $16 and the tax results in a loss of $900 in consumer surplus. 2.5 po
PRICE (Dollars per pack) 50 45 TAX REVENUE (Dollars) 40 35 30 25 400 360 320 At this tax amount, the equilibrium quantity of cigarettes is government collects $ in tax revenue. 280 240 0 Suppose the government imposes a $10-per-pack tax on suppliers. 200 160 120 0 5 80 40 Supply Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per pack. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. 0 Demand Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 10 15 20 25 30 35 40 45 50 QUANTITY (Packs) 5 True O False Graph Input Tool Market for Cigarettes Quantity (Packs) 10 15 20 25 30 TAX (Dollars per pack) Demand Price (Dollars per pack) Tax…
QUESTION 23 Refer to the graph below for a market. ↑Price 48 Supply 44 40 36 32 28 24 20 16 12- 8 4 Demand ++++ Quantity 10 15 20 25 30 35 40 45 50 55 60 Assuming that the government imposes a tax size of AB in the above market, Based on that calculate 1. Consumer surplus after taxes 2. Producer surplus after taxes 3. Tax revenue after taxes 4. Deadweight loss if any after taxes Note: Make sure to calculate the exact dollar amount with the steps. T T T F Paragraph 只i8公 Arial 3 (12pt) O f • Mashups HOO HTML CSS Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Figure 8-1 P' P" P tPrice J K L Zi I+Y. M K+L. N ****** ...... B Refer to Figure 8-1. Suppose the government imposes a tax of P - P". The tax revenue is measured by the area J+K+L+M. Supply I+J+K+L+M+Y. Demand Quantity
The vertical distance between points A and B represents the original tax. 12+ 11+ 10 9 8 7. 6 Price 2 1 D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit tax from $5.00 to $7.50, then the price paid by buyers would be $10.50, the price received by sellers would be $3, and the quantity sold in the market would be 0.5 units. Deadweight loss would now be a. $1.50 O b. $0.50 c. $4.0 Od. $0.625
Using the supply and demand data for wheat below, what would happen if the government placed a $3 per bushel tax on wheat? Bushels demanded 45 50 56 61 67 Price per bushel $6 $5 $4 LA LA LA $3 $2 Bushels supplied 77 73 68 61 57 O the producer price would fall, the consumer price would rise, and the quantity sold would increase. The producer price would fall, the consumer price would rise, and the equilibrium quantity would fall O Both the consumer price and the producer price would rise the consumer price would rise by less than $3 while the producer price would fall by more than $3 O the equilibrium consumer price would rise by $3
Figure 4-5. The graph shows the impact of an excise tax. Price $2.00 1.50 1.00 .50 B A M E H K I 350 F 500 Quantity tax G Stax $1.00 for consumers and $0.50 for producers $1.00 for consumers and $1.00 for producers. $0.25 for consumers and $0.75 for producers. $0.50 for consumers and $0.50 for producers. S DSR Refer to Figure 4-5. The amount of the actual tax burden paid by consumers and producers is
Use figure exam2-002 below, the total tax revenue collected by the government and the deadweight loss as a result of the $6 per-unit tax are: figure exam2-002 Price $20 $16 $14 $10 $8 $2 $4800, $1200 $3600, $900 $2400, $600 $1200, $300 400 Supply + Tax 600 Supply Demand Quantity
28 24 20 16 12 8 4 0 P 0 4 O a) $6, buyers Ob) S6, sellers Oc) $48, buyers O d) $48, sellers 8 12 16 20 S D 24 Q 15. Based on this graph, depicting the imposition of a $6 per unit sales tax on a good, how much total revenue does the government collect, and who bears more of the economic burden of this tax - buyers or sellers?
Suppose that the government decides to charge cola consumers an excise tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6million cases of cola are sold every month; consumers pay $4.00 per case and producers receive $2.00 per case. a. What is the excise tax on cola?b. On whom does the incidence of the tax fall more heavily?c. How much government revenue will be generated by the excise tax?
Kel ng Time: * Question Completion Status: The vertical distance between points and represents a tax in the market. PRICE 12 10 9 8 CO 76 5 inutes, 37 seconds. 4 3 2 1 A B Supply Demand +++ H 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6) QUANTITY Refer to Figure 8-2. The amount of tax revenue received by the government is a. $2.50. b. $9. c. $4. d. $5. A Moving to another question will save this response. Mac