Homework Answers
i) When imposed on buyers, demand curve would shift to the left as a result of tax
When imposed on sellers, supply curve would shift to the left as a result of tax
ii) New equilibrium quantity is 8 units in both cases
iii) New equilibrium price is $12 in case of supply shift and $8 in case of demand shift
iv) Price buyers pay will be $12 in both cases
v) Price sellers receive will be $8 in both cases
vi) Tax received by government is 4*8 = $32 in both cases.
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Problem la: What is the effect of a $4 unit tax imposed on the seller? Problem...
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...
Suppose a $3 per-unit tax is imposed on the sellers of this good. 1) What is...
Suppose a $3 per-unit tax is imposed on the sellers of this
good.
1) What is the effective price that sellers will receive for the
good after the tax is imposed?
2) What price will buyers pay for the good after the tax is
imposed?
3)How much is the burden of this tax on the buyers/sellers in
this market?
How do you calculate it? Please explain.
Price 20 18 16 14 12 10 8 6 4 D 10 12 14...
Now suppose that the government imposes a $2 tax per case on the sellers of microwave...
Now suppose that the government imposes a $2 tax per case on the sellers of microwave popcorn. The graph below shows the effects of this tax. Supply Demand 100 200 300 400 500 600 700 800 900 Quantity Using the information in the graph above, identify each of the following (after the tax is imposed): e. the new equilibrium price and quantity f. price paid by buyers g. price received by sellers h. consumer surplus i. producer surplus j. government...
Can someone help me with this HW question thank you. The graph shows the market for...
Can someone help me
with this HW question thank you.
The graph shows the market for pillows Oraw a point to show the price of a pillow and the quantity bought and sold Label a1 The government imposes a tax of $4 per pillow on buyers Draw the S+ tax curve and label it Draw a point to show the price paid by buyers and the quantity bought and sold with the lax Label t 2 Draw a point to...
The graph shows the supply curve of no-name soda. The government has imposed a sales tax...
The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. Price (dollars per case) The sellers of no-name soda end up paying the entire tax. @ O3 Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by...
Refer to Figure 7. The price paid by buyers after the tax is imposed is a. $8. b. $16. C. $14. d. $12.
Refer to Figure 7. The price paid by buyers after the tax is imposed is a. $8. b. $16. C. $14. d. $12.Refer to Figure 7. The effective price received by sellers after the tax is imposed is a. $8. b. $16. c. $14. d. $12.Refer to Figure 7. The amount of the tax per unit is a. $4. b. $8. C. $14. d. $10.Refer to Figure 7. The per-unit burden of the tax is a. $2 for buyers and...
Price (dollars per case) The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2...
Price (dollars per case) The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. The sellers of no-name soda end up paying the entire tax. Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by sellers O...
Tax Problem: Suppose the demand curve for a good is given by Q D = 10...
Tax Problem:
Suppose the demand curve for a good is given by Q D = 10 - 2P and
the supply curve is given by
Q S = -2 + P.
a) (4 points) Find the equilibrium price and quantity in the
absence of any government intervention.
b) (6 points) Now suppose the government imposes a tax of t = 3.
Find the new equilibrium price at
which the good is sold in the market and the quantity of the...
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? )...
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for...
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for wine in the United States. The orange (upward-sloping) line represents the supply curve of wine, and the blue (downward-sloping) line represents the market demand. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. The market is initially in equilibrium. Then the government institutes a $11.60 per bottle tax...
Suppose a $3 per-unit tax is imposed on the sellers of this
good.
1) What is the effective price that sellers will receive for the
good after the tax is imposed?
2) What price will buyers pay for the good after the tax is
imposed?
3)How much is the burden of this tax on the buyers/sellers in
this market?
How do you calculate it? Please explain.
Price 20 18 16 14 12 10 8 6 4 D 10 12 14...
Now suppose that the government imposes a $2 tax per case on the sellers of microwave popcorn. The graph below shows the effects of this tax. Supply Demand 100 200 300 400 500 600 700 800 900 Quantity Using the information in the graph above, identify each of the following (after the tax is imposed): e. the new equilibrium price and quantity f. price paid by buyers g. price received by sellers h. consumer surplus i. producer surplus j. government...
Can someone help me
with this HW question thank you.
The graph shows the market for pillows Oraw a point to show the price of a pillow and the quantity bought and sold Label a1 The government imposes a tax of $4 per pillow on buyers Draw the S+ tax curve and label it Draw a point to show the price paid by buyers and the quantity bought and sold with the lax Label t 2 Draw a point to...
The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. Price (dollars per case) The sellers of no-name soda end up paying the entire tax. @ O3 Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by...
Price (dollars per case) The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. The sellers of no-name soda end up paying the entire tax. Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by sellers O...
Tax Problem:
Suppose the demand curve for a good is given by Q D = 10 - 2P and
the supply curve is given by
Q S = -2 + P.
a) (4 points) Find the equilibrium price and quantity in the
absence of any government intervention.
b) (6 points) Now suppose the government imposes a tax of t = 3.
Find the new equilibrium price at
which the good is sold in the market and the quantity of the...
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? )...
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for wine in the United States. The orange (upward-sloping) line represents the supply curve of wine, and the blue (downward-sloping) line represents the market demand. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. The market is initially in equilibrium. Then the government institutes a $11.60 per bottle tax...
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