What happens to the budget line if the government applies a specific tax of $1 per gallon of gasoline but does not tax other goods (assuming that the consumer will still buy more than 10 gallons per week)? What happens to the budget line if the tax applies only to purchases of gasoline in excess of 10 gallons per week? 1.) Use the line drawing tool to draw a new budget constraint with the gasoline tax on all gallons of gasoline. Label this line 'L2 2.) Use the multipoint curve drawing tool to draw the new budget constraint when the gasoline tax applies only to purchase of gasoline in excess of 10 gallons per week. Label this line 'L3 (Note: Be sure to draw the entire budget constraint starting at a quantity of 0). Carefully follow the instructions above, and only draw the required objects All other goods, Units per week 10 Gasoline, Gallons per week

What happens to the budget line if the government applies a specific tax of $1 per gallon of gasoline but does not tax other goods (assuming that the consumer will still buy more than 10 gallons per week)? What happens to the budget line if the tax applies only to purchases of gasoline in excess of 10 gallons per week? 1.) Use the line drawing tool to draw a new budget constraint with the gasoline tax on all gallons of gasoline. Label this line 'L2 2.) Use the multipoint curve drawing tool to draw the new budget constraint when the gasoline tax applies only to purchase of gasoline in excess of 10 gallons per week. Label this line 'L3 (Note: Be sure to draw the entire budget constraint starting at a quantity of 0). Carefully follow the instructions above, and only draw the required objects All other goods, Units per week 10 Gasoline, Gallons per week

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 4CQ

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Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? pls explain by drawing a diagram
i need help with this question 6 from my microeconmics assigments. i have already gotten it wrong twice.
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answers to the questions above. 1.) Using the line drawing tool, graph the effect of a tax on carbonated sodas in the market for orange juice by drawing a new demand curve. Label your line 'D₂. 2.) Using the line drawing tool, graph the effect of a cure for citrus greening in the market for orange juice by drawing a new supply curve. Label your line 'S2." 3.) Using the point drawing tool, indicate the new market equilibrium. Label your point 'e₂. Carefully follow the instructions above and only draw the required objects. The equilibrium quantity of orange juice of orange juice and the equilibrium price Price of orange juice P₁- e1
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