Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 8, Problem 1IAPA
To determine
To explain:
The reasons for whether the taxes are paid more by buyer orseller, andto show the same on graph.
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Students have asked these similar questions
Plz help Graph
The graph shows the market for pillows in which the government has imposed a
sales tax of $6 per pillow on sellers.
Draw a point to show the price of a pillow and the quantity of pillows bought and
sold with no tax. Label it 1.
Draw a point to show the price paid by buyers and the quantity of pillows bought
following the tax. Label it 2.
Draw a point to show the price received by sellers and the quantity of pillows sold
following the tax. Label it 3.
The tax is
O A. split between sellers and buyers, with buyers paying more than sellers
O B. paid by buyers and not sellers because tax is always added to the sale
price at the check-out
OC. paid by sellers and not buyers because the government imposed the tax
on sellers
O D. split evenly between sellers and buyers
16
14-
12-
10-
84
6-
4-
2-
Price (dollars per pillow)
S + tax
on sellers
S
D
12
+
6
10
Quantity (millions of pillows per year)
>>> Draw only the objects specified in the question.
If the government increases alcohol taxation how will it affect consumption?
Chapter 8 Solutions
Foundations of Economics (8th Edition)
Ch. 8 - Prob. 1SPPACh. 8 - Prob. 2SPPACh. 8 - Prob. 3SPPACh. 8 - Prob. 4SPPACh. 8 - Prob. 5SPPACh. 8 - Prob. 6SPPACh. 8 - Prob. 7SPPACh. 8 - Prob. 8SPPACh. 8 - Prob. 9SPPACh. 8 - Prob. 10SPPA
Ch. 8 - Prob. 1IAPACh. 8 - Prob. 2IAPACh. 8 - Prob. 3IAPACh. 8 - Prob. 4IAPACh. 8 - Prob. 5IAPACh. 8 - Prob. 6IAPACh. 8 - Prob. 7IAPACh. 8 - Prob. 8IAPACh. 8 - Prob. 9IAPACh. 8 - Prob. 10IAPACh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - Prob. 7MCQCh. 8 - Prob. 8MCQ
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- point(s) possible Submit Next question The graph shows the market for basketballs, when sellers are taxed $6 a ball. Price (dollars per ball) 27 What is the excess burden of the tax? 25- Is the demand for basketballs or the supply of basketballs more inelastic? $+tax 23- 21- 19- Draw a shape that shows the excess burden of the tax on basketballs. 17+16 15 15- AS The excess burden of the tax on basketballs is $ million. 13- D The supply of basketballs is more than the demand for basketballs, and 11-T0 the pays most of the tax. SS 9- O A. inelastic; seller 7- 12 O B. inelastic; buyer 5+ 16 12 Quantity (millions of balls) 8. C. elastic; buyer D. elastic: seller >> Draw only the objects specified in the question. its O Time Remaining: 00:53:44 Next mpleted his course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e MacBook Pro O O O Oarrow_forwardThe 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.arrow_forwardThe graph shows the market for backpacks. Price (dollars per backpack) 22- 20- 18- 16- 14- 12- 10- 8 6- D 100 200 300 400 500 600 700 800 Quantity (backpacks per day) If a sales tax of $4 a backpack is imposed, calculate the tax burden. The tax burden is $ Type a day. That's incorrect. With a $4 tax on backpacks, the price paid by the buyer is $4 more than the price received by the seller. What is the quantity of backpacks bought and sold? What is the tax revenue? What is the excess burden? What is the tax burden?arrow_forward
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