The vertical distance betweenpoints A and B represents a taxin the market. Refer to FigureThe amount of tax revenuereceived by the government isa. $2.50.b. $5.c. $4.d. $9.The vertical distance between points A and B represents a tax in the market.PRICE21011985B321SupplyDemandH0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0QUANTITY

Given the graph described, we need to determine the tax revenue received by the government from the…

Answered: The vertical distance between points A…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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24 22 20 A 18 16+ 14+ Supply B 12 10- F H 6. 4 K Demand 2+ ++→ 16 4. 10 12 14 One effect of the tax is to reduce consumer surplus by S36. reduce producer surplus by $24. create a deadweight loss of $20. 8. 2.
Suppose the government of Country X would like to reduce traffic congestion by imposing a per-unit tax on car sellers. а. With the aid of a well-labeled demand-and-supply diagram, explain the effects of the per-unit sales tax on the car market in Country X, and the tax incidence. b. Many car sellers complain about the heavy tax burden of the per-unit sales tax. To address the complains of the car sellers, the government of Country X proposes the tax to be levied on car buyers instead of car sellers. Under what condition will the sellers bear a larger tax burden than buyers? Explain whether the new proposal can successfully reduce the tax burden of car sellers.
The government raises taxes on cigarettes from $1 per to $2 per pack. Prior to the tax increase, 5 million packs were sold each year. The new equilibrium quantity is 4 million packs. a. If demand is elastic, an increase in the level of a tax will _______ tax revenue. - increase, decrease or not change. b. All other things equal, a tax on ________ (hamburgers, breakfast cereal, luxury watches, or cigerattes) would be likely to raise the greatest revenue because demand is most _________ (elastic, inelastic or unit elastic). c. All other things equal, a tax on ________ (hamburgers, breakfast cereal, luxury watches, or cigerattes) would cause the greatest deadweight loss.
What is the government's revenue collected from the $20 sales tax on each yellow bell pepper? Enter the dollar value in the blank below. Repeating the table for convenience: Table 1: Table Price Q. Demanded Q. Supplied $ 20 120 110 100 90 80 70 60 $25 $ 30 $ 35 $40 $45 $ 50 $55 $ 60 $65 $ 70 $75 $80 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 110 120
Refer to Figure 8-2. Producer surplus without the tax is a. $10, and producer surplus with the tax is $3. b. $10, and producer surplus with the tax is $1. c. $4, and producer surplus with the tax is $3. d. $4, and producer surplus with the tax is $1. Icon Key 039.08.MANK09 The vertical distance between points A and B represents a tax in the market. PRICE 12 11 10 9 8 Figure 8-2 7 6 5 4 3 2 1 A Supply Demand 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITY Question 13 of 20
(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
7
QUESTION 18 Exhibit 19-6 Price of Good X 0 Quantity of Good X Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two equilibrium prices are $2.20 and $2.75. What is the tax revenue collected from the tax that shifted S 1 to S 2 when D 1 is the relevant demand curve? a. $440 Ob. $600 O c. $900 Od. $800
Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080-7P --120+3P Suppose now that government iniposes S60 tax per unit of output on sellars. What is the tax revenue for the govemment at the equilibrium? 7200 7320 6840 6000
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
Figure 8-9 The vertical distance between points A and C represents a tax in the market. 1000 900 800 700 600 500 400 300 200 100 1Price B Supply Demand 1つ選択してください: O a. $8,000. O b. $2,000. O c. $4,000. O d. $6,000. + 10 20 30 40 50 60 70 80 90 100110 Quantity Refer to Figure 8-9. The loss of consumer surplus as a result of the tax is

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