a) Price is $8 and quantity is 8000 units
b) Tax size is 11 - 6 = $5 per unit
c) Buyers pay 11 - 8 = $3 per unit as tax
d) Sellers pay 8 - 6 = $2 per unit as tax
e) Buyers are paying $11 per unit after tax
f) Sellers receive $6 per unit after tax
g) Sales are dropped from 8000 units to 6000 units. DWL = efficiency loss to consumers + efficiency loss to producers = 0.5 x size of tax x reduction in quantity sold = 0.5*5*2000 = $5000
Using the graph shown, in which the vertical distance between points A and B represents the...
Question 4-(Chapter 6)- Government Policies: Using the graph shown, answer the following questions: a. What was the equilibrium price in this market before the tax? b. What is the amount of the tax? c. How much of the tax will the buyers pay? d. How much of the tax wil the sellers pay? e. How much will the buyer pay for the product after the tax is imposed? f. How much will the seller receive after the tax is imposed?...
Question 4-(Chapter 6)- Government Policies: Using the graph shown, answer the following questions: a. What was the equilibrium price in this market before the tax? b. What is the amount of the tax? c. How much of the tax will the buyers pay? d. How much of the tax wil the sellers pay? e. How much will the buyer pay for the product after the tax is imposed? f. How much will the seller receive after the tax is imposed?...
Figure 2 The vertical distance between points A and B represents the tax in the market. Tarice 24 16 10 quantity 100 70 Question 12 2 pt Refer to Figure 2. The price that buyers pay after the tax is imposed is $10 $16 $24 O $18 Question 13 Refer to Figure 2. The effective price that sellers receive after the tax is imposed is $18 $16 $10 $24 Question 14 2 pts Refer to Figure 2. The amount of...
1. The vertical distance between points A and B represents a tax in the market. What is total tax? What are the buyers’ and sellers’ per-unit tax burden? How much deadweight loss (DWL) results from this tax?
Figure 8-3 The vertical distance between points A and C represents a tax in the market. Refer to Figure 8-3. The price that buyers effectively pay after the tax is imposed is Group of answer choices P3. P1. P4. P2. We were unable to transcribe this imagehome / study / business/ economics / economics questions and answers/ figure 8-3 the w Question: Figure 8-3 The vertical distance beti Figure 8-3 The vertical distance between points A and represents a...
border. Question 1. [11 marks] The graph shows the supply and demand curves. Suppose after a tax is imposed, the quantity traded decreases to 50. Answer the following questions. a. [1 mark) What was the equilibrium price in this market before the tax? b. [2 marks] What is the amount of the tax (per unit)? c. [2 marks) How much of the tax will the buyers bear? d. [2 marks) How much of the tax will the sellers bear? e....
D Question 20 1 pts Figure 8-7 The vertical distance between points A and B represents a tax in the market. Price 24 Supply 20 18 l6 14 10 5 10 15 20 25 30 35 40 45 0 55 60 Danti Refer to Figure 8-7. Which of the following statements is correct? The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $30. 。The loss of...
Part 1. What was the equilibrium price in this market before the tax? What is the amount of the tax? How much of the tax will the buyers pay? How much of the tax will the sellers pay? How much will the buyer pay for the product after the tax is imposed? How much will the seller receive after the tax is imposed? As a result of the tax, what has happened to the level of output? Calculate the economic...
The vertical distance between points A and B represents a tax in the market. Price 15 14 13 12t Supply 10 Demand s 10 15 20 25 30 35 40 4 50 35 60 65 70 75 80 8 uantity Refer to Figure 8-4. The price that buyers effectively pay after the tax is imposed is $12. between $8 and $12. between $5 and $8. S5 Previous Page Next Page
QUESTION #1 Refer to Figure 1. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market? What price will buyers pay for the good after the tax is imposed? Explain clearly.QUESTION #2 Refer to Figure 1. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the sellers in this market? What is...