Price (dollars per pizza) 20 18 16 12 10 8 6 4 2 S+ tax on sellers S 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizzas) The figure above shows the pizza market in the city of Pepperoniville. If the government imposes the sales tax shown in the figure on sellers, then the price the buyer pays for pizza is $ and the price the seller receives for the pizza is $ Just enter value. Do not include the "$" sign.

Table: The market for taxi rides Fare (per ride) $7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 5 6 7 89 10 11 12 13 14 15 Quantity of rides (millions per year) Look at the table "The Market for Taxi Rides". If a tax of $2.00 per taxi ride is implemented in this market, how much will consumers pay for a taxi ride? O $6.00 O $4.00 O $7.00 O $5.00

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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 the price of a product rises by an amount less than the established tax, 1. Suppliers bear the tax 2. sellers bear the tax 3. buyers and sellers share the burden of tax 4. Buyers bear the tax

6. The diagram below shows the market for chromebooks in the town of Smallville, U.S.A. Policy mak- ers want to collect money for more paper books in school and place a tax of 100 $ on chromebooks. Describe the impact of the tax on the market below. Price 500 450 400 350 300 250 200 150 100 50 100 200 300- Chromebooks 800 900 1,000 7. After the tax, 8. After the tax, consumers pay a price of . 9. After the tax, producers receive a price of 10. What amount of tax revenues are collected when the tax is instituted?. chromebooks are exchanged in the market.

Price $3.50 3 2.50 Supply Demand Demand + $1 tax 1,200 1,500 Quantity The graph above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the buyer's tax incidence?

Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively.  Suppose the government imposes a per-unit tax of $45 on the cigarette sellers. By how much would buyers share the tax burden respectively? Show your calculation.

Price Tax Amount of the tax C. Quantity Click to view larger image. Look at the provided figure. What area(s) represent the deadweight loss after the tax? O A + B B + C O E+ F B.

Price $3.50 3 2.50 $0.25 $1.00 1,200 1,500 $0.50 Supply The figure above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the seller's tax incidence? Between $0.00 and $1.00 depending on elasticity of supply. Demand Demand + $1 tax Quantity