President Biden has proposed a $2.2 trillion Infrastructure package to repair roads and bridges. The exact source of the funds is unclear at the time of construction of this exam, but some policy analysts think that at least one part of the funding will be an increase in the federal excise tax on gasoline. Suppose the size of this increase in excise tax is written as t.  Using a graph and equilibrium, analyze and explain the impact of this t dollars per gallon increase in excise tax on gasoline. Which of the curve(s), if any, would shift, and why? Graphically, show the new equilibrium price and quantity (labeling it P1 and Q1). At the new equilibrium, please determine how much of the tax increase was borne by gasoline consumers and how much was absorbed by gasoline sellers? Indicate the incidence of taxation for both consumers and sellers on the graph and explain. What will determine whether consumers or sellers will bear a higher relative burden of taxation? Please explain in detail.

Consider the supply and demand functions graphed below. Р Demand Supply 20 50 80 100 Download the figure. Suppose a demand-side tax is imposed. As a result of the tax, the new equilibrium quantity is 50. What is the price paid by consumers? What is the price paid by producers? How much is the tax that was imposed? How much tax revenue is collected? Which side of the market pays more of the tax? This side of the market pays more of the tax because 10 LO 21 GA GA

The demand for gasoline is P= 4 – 0.002Q and the supply is P= 0.4 + 0.004Q, where Pis in dollars and Qis in gallons. Instructions: Round your answer to the nearest penny (2 decimal places). If a tax of $0.8/gallon is placed on petrol, what is the incidence of the tax? Tax incidence to the consumer: $ Tax incidence to the supplier: $ Instructions: Round your answers to the nearest whole number. What is the lost consumer surplus? $1 What is the lost producer surplus? 24

Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of soda to improve the health of its citizens. Manipulate the accompanying graph to demonstrate the impact of the tax on the market for soda Market for Bottles of Soda 5.0 4.5 4.0 What would be the new equilibrium quantity if instead of taxing consumers, the city taxed producers? 3.5 3.0 2.5 thousand bottle:s 2.0 0.5 0.0 0 2 34 Quantity (thousands of bottles) 5 8 9 10

When assessing the welfare effects of taxes, we can conclude that They are always welfare increasing, because they allow the government to provide essential goods They are usually welfare decreasing in the market in which they are raised, but for society as a whole it depends on how they are used They are always welfare decreasing They are welfare neutral, because whatever is lost by producers and consumers goes instead to the government and therefore is just a reallocation of money

A province needs to raise money, and the premier has a choice of imposing an excise tax of the same amount on one of two previously untaxed goods: restaurant meals or gasoline. Both the demand for and the supply of restaurant meals are more elastic than the demand for and the supply of gasoline. If the premier wants to minimize the deadweight loss caused by the tax, which good should be taxed? For each good, draw a diagram that illustrates the deadweight loss from taxation

The Nobel prize winning economist Milton Friedman liked to tell this story:   There once was a town where thanks to expansive fiscal policy in Washington, the town had more money to fix roads and build bridges. The construction workers on those projects splurged on steak dinners every Friday, the meat for which they bought at the local butcher shop. The butcher was thrilled by increased sales of meat, as was the butcher's wholesale supplier. In fact, the butcher's supplier tried to put in bigger orders but it wasn't possible to buy more because the slaughterhouses were caught short, too. The result? Higher prices for meat got passed up from the slaughterhouse to the wholesaler to the butcher to the construction workers. With the possible exception of the owners of cattle, nobody was happy. Now a news reporter heard about surging steak prices in the town and decided to write a story about what was happening. Since the initial increase in meat prices was seen in the price of meat sold by…

Question 8 Consider the following supply and demand functions in a market: p=12-2Q p=2Q Suppose the government imposes a tax rate t*=4 on demand. Compute the total economic tax burden (incidence) on producers (after tax t* is imposed). (Enter your answer to one integer. For "8", you would write 8).

please teach  explain step by step, how is it like to graph?

In an economy such that: C = 200 + 0.80 (Y – T)           Md = 0.20 Y - 10 R I = 40 - 20 R                            Ms = 200 + BP X = 30 - 0.05 Y                       BP = X + K T = 100                                   K = 20 + 10R G = 150                                                                                               Determine the equilibrium levels of Y and R. If T increases to $150, what are the new Y and R?  What is the tax multiplier?