5 4 3 2 G 5 4 3 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15( 1 2 3 4 5 6 7 8 9 10 11 12 13 14 E Figure:Supply and Demand Graph (copied twice in case you want to draw on it) 1. (Figure Supply and Demand Graph) In the market represented by the graph, if the government sets a tax of $6, what is the government revenue received from this tax? A) $0 B) $6 C) $18 D) $36

5 4 3 2 G 5 4 3 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15( 1 2 3 4 5 6 7 8 9 10 11 12 13 14 E Figure:Supply and Demand Graph (copied twice in case you want to draw on it) 1. (Figure Supply and Demand Graph) In the market represented by the graph, if the government sets a tax of $6, what is the government revenue received from this tax? A) $0 B) $6 C) $18 D) $36

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 5PA

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Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) 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. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per pair) 2 2 2 2 2 2 2 2 O 50 40 35 Supply 30 25 # 15 Demand 10 5 45 0 I 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of shoes) Before Tax After Tax Buyers Sellers Graph Input Tool Market for Shoes Quantity (Pairs of shoes) Tax Burden (Dollars per pair) Elasticity Demand Price (Dollars per pair) The burden of the tax falls more heavily on the Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay (Dollars per pair) Price Sellers Receive (Dollars per pair) (Pairs of shoes) 50 25.00 10 75.00 elastic side of the…
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Kel ng Time: * Question Completion Status: The vertical distance between points and represents a tax in the market. PRICE 12 10 9 8 CO 76 5 inutes, 37 seconds. 4 3 2 1 A B Supply Demand +++ H 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6) QUANTITY Refer to Figure 8-2. The amount of tax revenue received by the government is a. $2.50. b. $9. c. $4. d. $5. A Moving to another question will save this response. Mac
ng System (Academic) of estion Price (dollars per CDJ g 8 40 20 10 + tax on seller Select one: S 0 10 20 30 40 50 60 70 80 D A. $200 million OB. $20 million OG $400 million O D. $40 million Quantity (millions of CDs per year] In the above figure, what is the total tax revenue collected by the government?
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20 10 -demand - uey with ta How much revenue will the government gain if they put a $6 tax on this product? Do not write the dollar symbol ($) because that confuses the computer. Write just a number. 16
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5. Calculating tax incidence Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 25 million cases of cola were sold every month at a price of $7 per case. After the tax, 18 million cases of cola are sold every month; consumers pay $8 per case, and producers receive $5 per case (after paying the tax). The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. O True O False