The graph shows the market for mechanical pencils in which the government has imposed a sales tax of $2 per mechanical pencil on sellers. Draw a point at the price paid by the buyers and the quantity of mechanical pencils bought. Draw the government's tax revenue. Label it TR. Draw the producer surplus. Label it PS. Draw the consumer surplus. Label it CS. Draw the deadweight loss from the tax. Label it DWL. >>> A label box can be dragged by its edge to a new position. 18.00- 16.00- 14.00 12.00 10.00- 8.00+ 6.00- 4.00 2.00 0.00- Price (dollars per mechanical pencil) 0 S+tax S Q D 2 6 8 10 12 14 Quantity (millions of mechanical pencils per year) >>> Draw only the objects specified in the question. Q

The graph shows the market for mechanical pencils in which the government has imposed a sales tax of $2 per mechanical pencil on sellers. Draw a point at the price paid by the buyers and the quantity of mechanical pencils bought. Draw the government's tax revenue. Label it TR. Draw the producer surplus. Label it PS. Draw the consumer surplus. Label it CS. Draw the deadweight loss from the tax. Label it DWL. >>> A label box can be dragged by its edge to a new position. 18.00- 16.00- 14.00 12.00 10.00- 8.00+ 6.00- 4.00 2.00 0.00- Price (dollars per mechanical pencil) 0 S+tax S Q D 2 6 8 10 12 14 Quantity (millions of mechanical pencils per year) >>> Draw only the objects specified in the question. Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If after a tax is imposed, the price paid by the buyer rises by $3 while the price received by the seller falls by $2, and the quantity of goods sold falls from 300 to 200 units, what is the amount of government revenue from this tax?
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According to Graph 8-1, after the tax is levied, producer surplus is represented by area:
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Which if the following best describes the effect a $3 increase in a sales tax has on the equilibrium price in a market where the demand curve slopes downward and the supply curve slopes upward. Assume that the government collects the tax from sellers. a. The market price increases by $3. b. The market price rises by more than $3. c. The market prices rises, but the increase is less than $3. d. The market price will not change, the quantity supplied will decrease
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