Case C- Variable Elasticity of Demand Price per Grebe (Costs) 45 40 35 30 25 20 15 10 400 500 100 200 300 Millions of Greebes (000,000's million) Quality D. 5. If an excise tax of 10 cents per Greebe sold is levied on the sellers of Greebes, the equjlibrium price paid by buyers (Pb) will differ from the equilibrium price received by sellers (Ps) by the amount of the tax. This 10 cents goes to the government. Underthese circumstances: The new equilibrium quantity of Greebes would be b. The new equilibrium price paid by buyers would be The new equilibrium price received by sellers (after tax) would be d. Buyers would spend a total of $ e. Sellers would receive a total of $ f. a. million cents per Greebe per Greebe C. million on Greebes million (after tax) from selling Greebes The government revenue from this tax would be $ million. B. $ h. $. million of this revenue would be paid by buyers in the form of higher prices million of this revenue would be paid by sellers in the form of reduced income

Case C- Variable Elasticity of Demand Price per Grebe (Costs) 45 40 35 30 25 20 15 10 400 500 100 200 300 Millions of Greebes (000,000's million) Quality D. 5. If an excise tax of 10 cents per Greebe sold is levied on the sellers of Greebes, the equjlibrium price paid by buyers (Pb) will differ from the equilibrium price received by sellers (Ps) by the amount of the tax. This 10 cents goes to the government. Underthese circumstances: The new equilibrium quantity of Greebes would be b. The new equilibrium price paid by buyers would be The new equilibrium price received by sellers (after tax) would be d. Buyers would spend a total of $ e. Sellers would receive a total of $ f. a. million cents per Greebe per Greebe C. million on Greebes million (after tax) from selling Greebes The government revenue from this tax would be $ million. B. $ h. $. million of this revenue would be paid by buyers in the form of higher prices million of this revenue would be paid by sellers in the form of reduced income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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