These are three sub question of one main question so solve completely otherwise leave it.Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. The graph below shows the market for brick-building in Mushroom Kingdom. In order to raiserevenue, the Mushroom Kingdom has instituted an excise tax. Assume the market is perfectlycompetitive with no externalities. Use this information for the following 3 questions.SPrice20₁181614121086420040 80 120 160 200 240 280 320 360 400Quantity17. (Brick Taxes) If the government imposes a $5 tax per transaction, how muchdeadweight loss would this policy generate?a. $100b. $150c. $200d. $250D18. (Brick Taxes) If the government imposes a $5 tax per transaction, what will be thenew price brick suppliers feel they receive?a. $5b. $9c. $14d. $1719. (Brick Taxes) If the government imposes a tax of $5 per transaction, what amount ofthe total tax revenue do the consumers effectively pay?a. $120b. $140c. $180d. $240

Tax needs to be paid by both producers and consumers irrespective of whom the tax has been…

The graph below shows the market for brick-building in Mushroom Kingdom. In order to raise revenue, the Mushroom Kingdom has instituted an excise tax. Assume the market is perfectly competitive with no externalities. Use this information for the following 3 questions. Price 20 18 16 14 12 10 8 6 4 2 0 0 S 40 80 120 160 200 240 280 320 D 360 400 Quantity 17. (Brick Taxes) If the government imposes a $5 tax per transaction, how much deadweight loss would this policy generate? a. $100 b. $150 c. $200 d. $250 18. (Brick Taxes) If the government imposes a $5 tax per transaction, what will be the new price brick suppliers feel they receive? a. $5 b. $9 c. $14 d. $17 19. (Brick Taxes) If the government imposes a tax of $5 per transaction, what amount of the total tax revenue do the consumers effectively pay? a. $120 b. $140 c. $180 d. $240

The graph below shows the market for brick-building in Mushroom Kingdom. In order to raise revenue, the Mushroom Kingdom has instituted an excise tax. Assume the market is perfectly competitive with no externalities. Use this information for the following 3 questions. Price 20 18 16 14 12 10 8 6 4 2 0 0 S 40 80 120 160 200 240 280 320 D 360 400 Quantity 17. (Brick Taxes) If the government imposes a $5 tax per transaction, how much deadweight loss would this policy generate? a. $100 b. $150 c. $200 d. $250 18. (Brick Taxes) If the government imposes a $5 tax per transaction, what will be the new price brick suppliers feel they receive? a. $5 b. $9 c. $14 d. $17 19. (Brick Taxes) If the government imposes a tax of $5 per transaction, what amount of the total tax revenue do the consumers effectively pay? a. $120 b. $140 c. $180 d. $240

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.9P

See similar textbooks

Similar questions

S' S P2 P1 P3 D Q2 Q1 The attached graph shows an externality. We would like to use a Pigouivan Tax to correct the externality. Calculate the tax. P1 3 $7.50, Р2 %3 %$13.00, Р3 3D 1.00 and Q1 = 17, Q2 = 2 in
The use of gasoline creates a negative externality through air pollution. What is the size of the deadweight loss (DWL) caused by the externality? Select ALL letters that are part of the DWL Priake 200 OA
1.1 For many years, South Africa's finance minister has raised the tax on the sale of cigarettes. Using the diagram below, explain whether the burden of the tax Is falling on the buyer or the seller. Price (rands per pack) 30 18 16 20 12 NO 00 10 0 Price paid by buyers Price with no tax Price received by sellers 5+ tax on sellers R6,00 tax 275 300 325 350 375 400 425 450 Quantity (millions of packs per year)
Suppose a $1 excise or commodity tax is placed on the purchasers of cans of soda. Use the graph to illustrate the impact this tax would have on the soda market and answer the questions. Be certain to shift the entire curve, endpoint to endpoint. Price per can (5) 10 9 8 7 3 2 1 0 1 deadweight loss: $ 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Calculate the deadweight loss of the tax. Enter the answer in thousands. Supply Demand deadweight loss: $ 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Demand Calculate the deadweight loss of the tax. Enter the answer in thousands. The tax would affect a household's Choose the answer that best describes the impact this tax would have on a household's economic income and whether it would cause a large change in the household's consumption of soda. This sort of change in behavior is called tax shifting. O uses side, but tax shifting is not likely to occur. O…
enumerate five common public goods and services the government provides from the taxes we pay. Are the benefits of these public goods and services worth the taxes your parents pay? expalin.
EOC 9.01 If the government decides to increase the tax on gasoline from $0.10 to $0.12 per litre, what happens to the deadweight loss from this tax? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. It rises by more than 20%. a b It rises by less than 20%. It rises exactly 20%. Deadweight loss will not change.
Price per bin 120 110 100 90 80 70 60 50 40 30 20 10 $800 $900 $450 1 $1250 1 I 1 + V D The figure represents the market for apples. Assume there are no externalities. Suppose a sales tax of $40 per bin of apples is levied on consumers of apples. The after-tax supply curve is labeled S+t. What is the dollar amount of the REVENUE collected by this tax? To review this concept, see the section Taxes and Efficiency. S+t S 10 20 30 40 50 60 70 80 90 100 Bins of apples
Now calculate the government's tax revenue if it sets a tax of $0, $2, $4, 55, 56, 58, or $10 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. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 200 180 160 140 120 100 40 20 o 3 TAX (Dolars per pack) 10 A Laffer Curve
Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” Why do you think Adam Smith preferred to impose a tax on luxury goods? Why do you think Adam Smith preferred a tax on ‘objects of almost universal consumption’? Note that ‘Smith’s proposal to tax sugar was not aimed at improving health’ Requirement: Demonstrate a precise understanding of Adam Smith’s meaning and intent, with the appropriate link to relevant economic concepts.
Discuss the 5 properties of a good tax system
The graph shown demonstrates a tax on buyers. Before the tax was imposed. sellers produced for each one sold A 6: $24 B) 6: $22 9: $30 9: $38 a 34 30 22 18 6 E₁ 6 10 DI D₂ units and received
7. Failing to correct negative externalities will create a deadweight loss. Graph it! 8. Explain how the government can discourage negative externalities. Graph it!