EBK ECONOMICS
EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Chapter 6, Problem 5SPA

Taxes (Study Plan 6.3)

5. The table in the next column sets out the demand and supply schedules for chocolate brownies.

Price (cents per brownie) Quantity demanded Quantity supplied
(millions per day)
50 5 3
60 4 4
70 3 5
80 2 6

a. If sellers are taxed 20¢ a brownie, what is the price and who pays the tax?

b. If buyers are taxed 20¢ a brownie, what is the price and who pays the tax?

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