Homework Answers
NOTE: As per our Honor code, we can attempt only the first question.
Due to the imposition of the tax, the demand decreases which shifts the demand curve leftwards. The original demand curve before the imposition of the tax is D1. The supply curve is S. also, the equilibrium point before the imposition of the tax was E1.
Before the tax was imposed, the market was in equilibrium. So, sellers produced 9 units of good. Also, they received $30 for each unit sold.
Answer: Option (D) is correct.
Add Answer to:
Consider the market depicted below: units and received for each one sold Suppose a tax located...
and market supply is given by the equation pop Suppose per unit tax is imposed that...
and market supply is given by the equation pop Suppose per unit tax is imposed that reduces the amber of units bought and sold in the market to 25s What is the size of the tax, and who bears the greater burden of the buyers or sellers 120 point
13. The following graph represents the market for Tim Wakefield bobblehead dolls. A Yankees fan has...
13. The following graph represents the market for Tim Wakefield bobblehead dolls. A Yankees fan has been clected governor and has imposed a $5 tax on each Tim Wakefield bobblehead sold. responsible for paying the $5 tax to the government The buyers are 35 30 25 I5 10 a) Shift the appropriate curve to show the effect of this tasx b) Label the new equilibrium quantity as Qtax c)Who bears the greater burden of this tax, buyers or sellers? )...
1. Symbolic and numerical tax incidence: Consider a market described by the following equations: where Y...
1. Symbolic and numerical tax incidence: Consider a market described by the following equations: where Y denotes income and α, β, γ, φ, and μ are parameters. Note that β must be less than zero and the other parameters are positive. Answer the following questions. Solve for the equilibrium price and quantity. Now suppose a specific tax, τ > 0, is imposed on this market that has to be paid to the government by suppliers. How can you represent the...
Short Answer 12 The following graph represents the market for Marvel comic books. A DC comics...
Short Answer 12 The following graph represents the market for Marvel comic books. A DC comics fan has been elected governor and has imposed a tax on each Marvel comic book sold. The sellers are responsible for paying the pr 0, a) Shift the appropriate curve to show the effects of this tax. b) Label the new equilibrium quantity as Qtax c) Who bears the greater burden of this tax? Buyers or sellers? d) If buyers had to pay the...
The figure above illustrates the market for antifreeze. Suppose the government decides to implement an $8 sales tax on the sellers for every gallon of antifreeze sold
The figure above illustrates the market for antifreeze. Suppose the government decides to implement an $8 sales tax on the sellers for every gallon of antifreeze sold. a) What is the equilibrium price of a gallon of antifreeze before the tax? What is the price paid by buyers after the tax? b) What is the equilibrium quantity of antifreeze before the tax? What is the equilibrium quantity after the tax? c) What is the revenue collected by the government from this tax? d) Do...
The figure above illustrates the market for antifreeze. Suppose the government decides to implement an $8 sales tax on the sellers for every gallon of antifreeze sold.
The figure above illustrates the market for antifreeze. Suppose the government decides to implement an $8 sales tax on the sellers for every gallon of antifreeze sold. a) What is the equilibrium price of a gallon of antifreeze before the tax? What is the price paid by buyers after the tax? b) What is the equilibrium quantity of antifreeze before the tax? What is the equilibrium quantity after the tax? c) What is the revenue collected by the government from this tax? d) Do...
The graph shows the market for pillows in which the government has imposed a sales tax of $4 per pillow on buyers. 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 graph shows the market for pillows in which the government has imposed a sales tax of $4 per pillow on buyers. 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 with the tax. Label it 2. Draw a point to show the price received by sellers and the quantity of pillows...
11. The following represents the market for dog biscuits. A cat person has been elected governor...
11. The following represents the market for dog biscuits. A cat person has been elected governor and has imposed a S5 tax on each case of dog biscuits sold. In order to discourage the ownership of dogs the governor makes buyers responsible for paying the tax 45 ys for 35+ as ao 15 10 a) Shift the appropriate curve to show the effect of this tax b) Label the new equilibrium quantity as Q c) Shade in the area representing...
Consider a market described by the following equations: Where Y denotes income and , 휑 ,...
Consider a market described by the
following equations:
Where Y denotes income and
,
휑
, and
휇
are parameters.
Note that
훽
must be less than zero
and the
other parameters are positive
.
Answer the following questions.
a.
Solve
for the equilibrium price and
quantity.
b.
Now suppose a specific tax,
휏
>
0
, is imposed on this market that has to be paid to the
government by
suppliers. How can you represent the
new
price
paid...
Suppose the government is considering taxing cigarettes. Because it is often politically more popular to tax...
Suppose the government is considering taxing cigarettes. Because it is often politically more popular to tax the producers of cigarettes than the consumers of cigałettes, the government first considers the impact on the market as a result of taxing the producers of cigarettes. a. Draw the after-tax supply curve if the government chooses to tax cigarette producers $2.50 per pack of cigarettes Instructions: Use the tool provided (S2) to plot the after-tax supply curve. Place your endpoints at Q-0 and...
and market supply is given by the equation pop Suppose per unit tax is imposed that reduces the amber of units bought and sold in the market to 25s What is the size of the tax, and who bears the greater burden of the buyers or sellers 120 point
13. The following graph represents the market for Tim Wakefield bobblehead dolls. A Yankees fan has been clected governor and has imposed a $5 tax on each Tim Wakefield bobblehead sold. responsible for paying the $5 tax to the government The buyers are 35 30 25 I5 10 a) Shift the appropriate curve to show the effect of this tasx b) Label the new equilibrium quantity as Qtax c)Who bears the greater burden of this tax, buyers or sellers? )...
1. Symbolic and numerical tax incidence: Consider a market described by the following equations: where Y denotes income and α, β, γ, φ, and μ are parameters. Note that β must be less than zero and the other parameters are positive. Answer the following questions. Solve for the equilibrium price and quantity. Now suppose a specific tax, τ > 0, is imposed on this market that has to be paid to the government by suppliers. How can you represent the...
Short Answer 12 The following graph represents the market for Marvel comic books. A DC comics fan has been elected governor and has imposed a tax on each Marvel comic book sold. The sellers are responsible for paying the pr 0, a) Shift the appropriate curve to show the effects of this tax. b) Label the new equilibrium quantity as Qtax c) Who bears the greater burden of this tax? Buyers or sellers? d) If buyers had to pay the...
11. The following represents the market for dog biscuits. A cat person has been elected governor and has imposed a S5 tax on each case of dog biscuits sold. In order to discourage the ownership of dogs the governor makes buyers responsible for paying the tax 45 ys for 35+ as ao 15 10 a) Shift the appropriate curve to show the effect of this tax b) Label the new equilibrium quantity as Q c) Shade in the area representing...
Consider a market described by the
following equations:
Where Y denotes income and
,
휑
, and
휇
are parameters.
Note that
훽
must be less than zero
and the
other parameters are positive
.
Answer the following questions.
a.
Solve
for the equilibrium price and
quantity.
b.
Now suppose a specific tax,
휏
>
0
, is imposed on this market that has to be paid to the
government by
suppliers. How can you represent the
new
price
paid...
Suppose the government is considering taxing cigarettes. Because it is often politically more popular to tax the producers of cigarettes than the consumers of cigałettes, the government first considers the impact on the market as a result of taxing the producers of cigarettes. a. Draw the after-tax supply curve if the government chooses to tax cigarette producers $2.50 per pack of cigarettes Instructions: Use the tool provided (S2) to plot the after-tax supply curve. Place your endpoints at Q-0 and...
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