Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
Question
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Chapter 7, Problem 6QE

(a)

To determine

Illustrate the equilibrium price and quantity before and after tax.

(b)

To determine

Determine the producer surplus when the market is in equilibrium before and after tax.

(c)

To determine

Determine the consumer surplus when the market is in equilibrium before and after tax.

(c)

To determine

Determine the tax revenue after the tax implemented.

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Use the graph to answer the following question: Which of the following statements is most true?  A) Producers will pay the entire tax.  B) Consumers will pay 1/3 of the tax.  C) Producers will pay 1/3 of the tax.  D) Consumers will pay the entire tax.
the tax of $6 per unit ,the price that consumers will pay is $10 and quantity sold is Q=20   Question 35 Refer to the Figure 2-1. What is producer surplus after the tax?   You can answer this in one (or more) of the following ways: Paste a picture or drawing of where to visually find the producer surplus on the graph. Describe in words where on a graph you would find producer surplus (ex:  in relation to supply curve, demand curve, above or below or between certain price or quantities) Calculate the producer surplus numerically. Describe conceptually what the producer surplus is in this context.
The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 22.00 Demand 28.00– 16.00 A B D F MOI UM I I E 24 36 QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. Result Equilibrium quantity after tax Per-unit tax Price producers receive after tax $ $ Value Supply Concept Deadweight loss after the tax is imposed In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Consumer surplus before the tax is imposed Producer surplus after the tax is imposed A B 000 □ [] 0 OOO DE □ □ C C (?) 00 F □ 0 0
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