What is the amount of the tax? $ 10120-PtaxWhat is consumer surplus before the tax? $ 5110-100-Consumer surplusby $as a result of the tax.90-80-70-65increases60-50-decreases40-30-20-10-5055D0+20406080100120

Consumer surplus calculated as, 1/2 × bade × hight

Answered: What is the amount of the tax? $ 10…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 1QR

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Similar questions

Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or Â£0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or Â£0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about Â£0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16
The govemment is considering imposing taxes onthe sellers of certain classes of products. The first tax they are considering is a tax on 2% milk. The second is a tax on all dairy products. The third is a tax on all food products. Which of these three taxes would you expect to have the largest impact on the sticker prices of the taxed products? Explain.
O When a per unit tax is imposed on the consumer of the product, identify how the consumer nd producer surplus changes, identify the deadweight loss and the amount of the total tax that vill be received by the government. Price PTax D PE F E P1 I H. K Dmi DMTAX QE QE2 Quantity aibicid eifigoh Consumer Surplus before tax = Producer Surplus before tax Consumer Surplus after tax = a Producer Surplus after tax = dig Total Tax = Deadweight Loss = %3D a,bicifih 7 b.) If the world price level of a product was above the domestic U.S. equilibrium price, diagram if the U.S. would import or export the product? Identify how the consumer surplus and producer
4
The graphs below illustrate the market for a product on which an excise tax has been imposed by government. $14+ Price 11 W S+T A 8 V SAU 2 0 2 4 S 678 10 12 14 16 Quantity Refer to the above graph. The excise tax per unit shouldered by the buyers is $ Please input the numerical answer without the $ sign.
K What is the amount of the tax? $ 500 What is consumer surplus before the tax? $ Consumer surplus by $ as a result of the tax 120 110 100 as 80 70-es 40 50 40 30 10- *** 15155 Fax S 0 100 120 Q Q G
Certain items, such as gasoline, air travel, hunting equipment, cigarettes, andtelecommunications services, have a special tax added to the purchase price. What is the name ofthis tax?
Price (dollars per pizza) 20 16 14 10 8 6 4 2 S+ tax on sellers S D 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizzas) The figure above shows the pizza market in the city of Pepperoniville. If the government imposes the sales tax shown in the figure on sellers, then the price the buyer pays for pizza is $ and the price the seller receives for the pizza is $ Just enter value. Do not include the "$" sign.
Figure 6-21 15 12 Price 80 105 120 S₂ Demand 160 Quantity Refer to Figure 6-21. How is the burden of the tax shared between buyers and sellers? Buyers bear A Othree-fourths of the burden, and sellers bear one-fourth of the burden. Otwo-thirds of the burden, and sellers bear one-third of the burden O one-half of the burden, and sellers bear one-half of the burden. one-fourth of the burden, and sellers bear three-fourths of the burden.
Why is the burden of a tax to taxpayers greater thanthe revenue received by the government?
The vertical distance between points A and B represents the original tax. ↑Price 12 11 F 10 + 7- 3+--*G 1- D 05 1 15 2 25 3 3S 4 45 5 Quaxtity If the government changed the per-unit tax from $5.00 to $2.50, then the price paid by buyers would be $7.50, the price received by sellers would be $5, and the quantity sold in the market would be 1.5 units. Compared to the original tax rate, what is the effect of this policy change to the government revenue and deadweight loss. Calculate.

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What is the amount of the tax? $ 10 What is consumer surplus before the tax? $ Consumer surplus by $ as