The graph shows the market for basketballs in which sellers are taxed $6 a ball.Draw a shape that shows the excess burden of the tax on basketballs.The excess burden of the tax on basketballs is $ million.The supply of basketballs is morethepays most of the tax.OA. inelastic; sellerOB. inelastic; buyerOC. elastic; sellerOD. elastic; buyerthan the demand for basketballs, andC27-25-23-21-19-17- 161515-13-11-109-7-Price (dollars per ball)5-01812$+tax+S16D12Quantity (millions of balls)>>> Draw only the objects specified in the question.OUNextmp

The excess burden of the tax is given by the dead weight loss due to imposition of tax i.e the…

Answered: The graph shows the market for…

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Economics

The graph shows the market for basketballs in which sell

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 graph shows the market for basketballs in which sellers are taxed $6 a ball.
Draw a shape that shows the excess burden of the tax on basketballs.
The excess burden of the tax on basketballs is $ million.
The supply of basketballs is more
the
pays most of the tax.
OA. inelastic; seller
OB. inelastic; buyer
OC. elastic; seller
OD. elastic; buyer
than the demand for basketballs, and
C
27-
25-
23-
21-
19-
17- 16
15
15-
13-
11-10
9-
7-
Price (dollars per ball)
5-
0
18
12
$+tax
+S
16
D
12
Quantity (millions of balls)
>>> Draw only the objects specified in the question.
OU
Next
mp

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