Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.QuantityPrice Buyers Pay(Pairs of jeans) (Dollars per pair)Price Sellers Receive(Dollars per pair)Before TaxAfter TaxUsing the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the priceelasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table.Tax Burden(Dollars per pair) ElasticityBuyersSellerselastic side of the market.The burden of the tax falls more heavily on the 7. Effect of a tax on buyers and sellersThe following graph shows the daily market for jeans. Suppose the government institutes a tax of $40.60 per pair. This places a wedge between theprice buyers pay and the price sellers receive.?200180160Supply14012010080PRICE (Dollars per pair)60402000Demand100Tax Wedge700 800400 500 600QUANTITY (Pairs of jeans)300200900 1000

Elasticity is a monetary idea used to quantify the adjustment of the total amount requested of a…

Answered: PRICE (Dollars per pair) 8 289 28 229…

PRICE (Dollars per pair) 8 289 28 229 200 160 100 140 120 100 60 40 20 0 Demand Tax Wedge Supply 400 500 600 700 800 900 1000

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

Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
Price Buyers Pay
(Pairs of jeans) (Dollars per pair)
Price Sellers Receive
(Dollars per pair)
Before Tax
After Tax
Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price
elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table.
Tax Burden
(Dollars per pair) Elasticity
Buyers
Sellers
elastic side of the market.
The burden of the tax falls more heavily on the

7. Effect of a tax on buyers and sellers
The following graph shows the daily market for jeans. Suppose the government institutes a tax of $40.60 per pair. This places a wedge between the
price buyers pay and the price sellers receive.
?
200
180
160
Supply
140
120
100
80
PRICE (Dollars per pair)
60
40
20
0
0
Demand
100
Tax Wedge
700 800
400 500 600
QUANTITY (Pairs of jeans)
300
200
900 1000

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