Principles of Macroeconomics, Loose-Leaf Version
8th Edition
ISBN: 9781337096881
Author: Mankiw, N. Gregory
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 6QR
To determine
The impact of a tax on buyers, sellers and price level in the economy.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
How does a tax on a good affect the price paid by buyers, price receive by sellers, and the quantity sold?
How does a tax on buyers affect the market equilibrium?
How does a tax on sellers affect the market equilibrium?
Chapter 6 Solutions
Principles of Macroeconomics, Loose-Leaf Version
Knowledge Booster
Similar questions
- The current market price of bananas is $1 per pound. Use a graph and words to show the effect of a ten cent tax on each pound of bananas. Insert your own numbers into your graph. Be sure to indicate the new price paid by consumers, the new price received by sellers, and the new quantity sold.arrow_forwardHow does government intervention in the prices of groceries affect the equilibrium of supply and demand in the market?arrow_forwardThe Indian government places a Rs. 1,000 tax on smart phones, will the price paid by consumers raise by more than Rs. 1,000, less than Rs. 1,000 or exactly Rs. 1,000? Explain.arrow_forward
- What effect does a per-gallon tax on gasoline have on the market for gasoline? Who pays for the increase in tax?arrow_forwardIn a country the Government determines to increase the tax on gasoline by $0.20 per gallon. The price of gasoline after taxes though only goes up by $0.15. Does this mean the gas station is not collecting the correct amount of taxes?arrow_forwardIf a $1000 tax were imposed in this market, what would be the price that consumers would pay?arrow_forward
- Can you explain this for mearrow_forwardThe Government places a luxury tax on cars that sell for over $50k. What would happen to the supply of Bentleys?arrow_forwardPrice of X Quantity Demanded of X $10 6000 $14 3000 Price of X Quantity Supplied of X $10 2400 $14 3000 Cross price elasticity of demand of X and Y 0.55 Income elasticity of demand of X 1.1 Is the good likely to be perceived as a necessity or a luxury by most consumers? How did you determine this? Who will pay more of the tax on the good: buyers or sellers? How did you determine this? Is it likely that the good takes a very long time to produce? How did you determine this? If the firm wishes to raise revenue, should it raise or lower prices? How did you determine this?arrow_forward
- The government taxes both clothing and tobacco. For a similarly sized tax, would you expect the quantity demanded of clothing or tobacco to be more affected?arrow_forwardIf the government removes a tax on a good, then the price paid by buyers will a)increase, and the price received by sellers will increase b)increase, and the price received by sellers will decrease c)decrease, and the price received by sellers will increase d)decrease, and the price received by sellers will decreasearrow_forwardhow does this impact the demandarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co