According to the Ramsey taxation result, which of the following markets would be the most efficient to tax? Pizza O Caviar Ice cream O Rice

1. Consider the market for candy bars given below. Suppose that the government imposes a tax of $2 per candy bar in this market. Show on the graph and calculate the following: Price 5 $4.50 $4 $3.50 Supply 53 $2.50 $2 $1.50 $1 Demand S0.50 400 800 1200 1600 2000 2400 2800 3200 3600 4000 Candy Bars A. The quantity the market will produce with the tax. B. The government revenue from the tax. C. The deadweight loss from the tax. D. The consumer surplus with the tax. E. The producer surplus with the tax.

The figure below shows a market of good C. Suppose that the government levied a tax on C. If the size of the tax is 10, how much is the after-tax equilibrium quantity? If the after-tax equilibrium quantity is 50, how much is the size of the tax? Quantity if tax = 10: Tax if quantity is 50:

In which of these scenarios is the burden of the tax greater on buyers than on sellers? AA BB C C DD B D

Suppose that the government imposes a per-unit tax on cell phones. The tax is imposed on producers of cell phones and the amount of the tax is $50 per cell phone. The following graph shows the effect of the tax. Use the graph to answer the following questions. a) How much of the tax per cell phone is paid by producers? How much of the tax per cell phone is paid by consumers? b) How much tax revenue (in total) does the government collect from the tax imposed on cell phones? c) What is the amount of the deadweight loss due to the presence of the tax on cell phones?

The division of a tax burden between Consumers and Producers is known as Tax IncidenceProducers bear the majority of a tax burden in which of the following circumstances?

ols 4. The Laffer curve Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections. To understand the effect of such a tax, consider the monthly market for champagne, which is shown on the following graph. 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 case) 22***RES 40 35 Show Transcribed Text AX REVENUE (Dolan) 018 27 345 54 63 72 81 00 QUANTITY (Cases) Suppose the government imposes a $10-per-case tax on suppliers. At this tax amount, the equilibrium quantity of champagne is [ . 648 576 504 432 360 204 3214 144 72 D Supply . Demand Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per case. (Hint: To find the equilibrium quantity…

Suppose that the local government of Santa Fe decides to institute a tax on soda consumers. Before the tax, 45,000 liters of soda were sold every week at a price of $10 per liter. After the tax, 38,000 liters of soda are sold every week; consumers pay $14 per liter (including the tax), and producers receive $8 per liter. The amount of the tax on a liter of soda is 3 that falls on producers is 5 per liter. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. True per liter. Of this amount, the burden that falls on consumers is 3 O False per liter, and the burden

Question 4 Figure #3: The graph below represents a $10 per unit tax on a good then the amount bought and sold in the market is only 4 units. Note that Q represents quantity and P represents price. P. 24 20 A 16 Supply 12 GIH 8. 4. K M Demand 4 6 10 12 14 16 Refer to Figure #3. The government collects tax revenue that is (or are) the area(s) represented by the area OF-G-L OL OB-D Oc-F

Use the graph to answer the following question: Which of the following statements is most true?  A) Producers will pay the entire tax.  B) Consumers will pay 1/3 of the tax.  C) Producers will pay 1/3 of the tax.  D) Consumers will pay the entire tax.