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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