Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $10.00 and the vertical intercept is $83.00 for the demand curve. Represent a $16.00 tax that is paid by sellers. Click the Tax Burden switch above the graph to show areas that represent some of the effects on consumer and producer surplus. Report all answers as positive values to two decimal places. a) How much revenue does the government earn from this tax? $1 b) How much of the government's revenue would have been consumer surplus had there not been a tax? $ c) How much of the government's revenue would have been producer surplus had there not been a tax? $

Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $10.00 and the vertical intercept is $83.00 for the demand curve. Represent a $16.00 tax that is paid by sellers. Click the Tax Burden switch above the graph to show areas that represent some of the effects on consumer and producer surplus. Report all answers as positive values to two decimal places. a) How much revenue does the government earn from this tax? $1 b) How much of the government's revenue would have been consumer surplus had there not been a tax? $ c) How much of the government's revenue would have been producer surplus had there not been a tax? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 19 The original equilibrium of a market is at price $20 and quantity 20. If a tax of $10 is imposed and producers receive a net price of $18, how much (in dollars) is the tax burden on producers? 2
If after a tax is imposed, the price paid by the buyer rises by $3 while the price received by the seller falls by $2, and the quantity of goods sold falls from 300 to 200 units, what is the amount of government revenue from this tax?
Consider the following supply and demand curves Price = 35-4*Q Price = 3*Q Suppose the government places a 7-dollar tax on producers. Doing so would generate _____ dollars of revenue. Suppose now instead of putting a 7-dollar tax on producers, the government put the 7-dollar tax on consumers. Doing so would generate _______ dollars of revenue. In this case, consumers would pay _____ percent of the tax. Give typed answer ASAP with proper step by step explanation. Will give upvote only for the correct answer . Thank you .
If the demand for a product is inelastic but the supply is elastic, the ________ will bear the tax incidence. Question 43 options: a) the local government b) the producer c) the consumer d) the federal government
185.Suppose the government wanted to impose a tax and wanted the entire burden of the tax to fall on the sellers. What would have to be true of a market for this to be possible? (A) The sellers would have to have a perfectly inelastic supply curve, and the buyers would have to have a perfectly inelastic demand curve. (B) The buyers would have to have a perfectly elastic demand curve, and the sellers must not have a perfectly elastic supply curve. (C) The sellers would have to have a perfectly inelastic supply curve, and buyers must not have a perfectly inelastic demand curve. (D) The buyers would have to have a perfectly inelastic demand curve, and the sellers would need not to have perfectly elastic supply curve. (E) Neither buyer nor seller should have perfectly elastic or perfectly inelastic curves.
The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $11.60 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per pair) 100 90 80 10 0 0 Demand Supply 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of jeans) Graph Input Tool Market for Jeans Quantity (Pairs of jeans) Demand Price (Dollars per pair) 10 150.00 Supply Price…
Question 2c - Part 2 Given the following information Qp = 240 - 5P %3D Qs = P where Qp is the quantity demanded, Qs is the quantity supplied and P is the price. Calculate: Producer surplus before tax
($) Price 90 8R88 용의 80 70 60 50 40 30 20 10 $74.00 $16.00 1.0 2.0 3.0 4.0 5.0 6.0 7.0 S+T 8.0 9.0 Quantity (thousands per week) Tax imposed on: Excise Tax (0-$20) Demand Perfectly Inelastic Supply Elastic CALCULATIONS No Tax With Tax Supply Relatively Elastic Relatively Elastic Demand Price Paid $50.00 $52.69 6.50 Relatively Elastic Perfectly Elastic Quantity 4,000 3,551
tax on buyers
Question 2: Imposing a single-stage tax Assume that there are 1000 importers and manufacturers, 2,000 wholesalers, and 10,000 retailers. Each manufacturer (importer) has sales of $30,000,000 which is sold equally across wholesalers, and wholesalers put a 20% markup on the price before selling to retailers Then the goods are resold equally to 10,000 retailers and the retailers impose a 25% markup on it. Suppose the government needs to raise 4.5 billion with a single- stage sales tax, a. What would be the rate of tax the government needs to impose on the sales of importers and manufacturers to achieve the revenue target. b. What would be the rate of tax the government needs to impose on the sales of wholesalers to achieve the revenue target?
If the state government would like to increase tax revenue, please give three examples of products/commodities that the government should impose tax on so that they can collect the highest amount of tax revenue. Please explain your reasons clearly.
Question 4 24 22 20 18 Supply 16 14 12 10 4 Demand 369 12 15 18 21 24 27 30 33 36 QUANTITY Consider the market described by the graph above where the vertical distance between points A and B represents a tax in the market. The per-unit burden of the tax on sellers is $4 and the tax results in a loss of $72 in producer surplus. $8 and the tax results in a loss of $48 in producer surplus. $4 and the tax results in a loss of $16 in producer surplus. $8 and the tax results in a loss of $16 in producer surplus.