What areas in the above graph represent the tax revenue from a Pigovian tax that internalizes the negative Price, Social Marginal Cost A Supply externality? В EiF IG D Demand Quantity A+B+C O D+E O D+E+F+G O D+E+F+G+H O None of the above
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- 18. The next few questions are about this generic market with a negative consumption externality. Fill in the welfare table below with the areas associated with each welfare measure. aslhee or batoob A P. 1 F H. G MSB Q, Qi tax that leads to Qo CS PS tax revenue externality total surplus gqg 53 2Abbo20 (p re 9 boagns exrsLU ednsto 75 beLapor entThe demand for cigarettes, which create negativeexternalities through secondhand smoke, is oftenrelatively inelastic. That is, when the price of cigarettes changes, the quantity demanded changes bya smaller portion. Using this fact, explain to whatextent you think a tax on cigarettes would fulfilleach of the goals of taxation.Opponents of increasing the tax on gasolineargue that the big oil companies just pass thetax along to the consumers. Do you agree ordisagree? Explain your answer.
- Graph the following data on social and market demand: Im pretty sure I have the graph correct but I am unsure how to find the anwsers to the questions. Price ($) 20 18 16 14 12 10 Market quantity demanded (units per month) 10 20 30 40 50 60 Social quantity demanded (units per month) 20 30 40 50 60 70 Does this product have external benefits or external costs? How large ($) is that externalitytudy Tools s ss Tips s Tips Point A TAX REVENUE (Billions of dollars) C D 20 Complete the following table by indicating what the government should do in order to maximize tax revenues if it is operating at each of the points listed. + OOO с $ INCOME TAX RATE (Percent) xo Raise Tax Rates Lower Tax Rates Keep Current Tax Rates O O O ooo 100 % MacBook Pro G Search or type URL & * O ( O C 11 A-ZCBS is selling advertising for its broadeast of the AFC championship game. The station's demand for minutes of commercial advertising time is the demand it faces from the companies to which it sells advertising tme: Pans= 100,000 - 500.CBS Las MC -S2000. Buyes pay CBS aprice Pens for cach minute of adNertising and add S1.000 for each ad to cover the tax they pay, so their MCans PeRs + 1000, No one has any fixed costts. Ihe price buyers will pay tor ads is (use dollar sign and any commns: no decimal places)
- PRICE (Dollars per unit) 24 20 16 co Refer to Figure 10-6. In order to reach the social optimum, the government could O a. impose a tax of $8 per unit on plastics. O b. impose a tax of $2 per unit on plastics. c. impose a tax of $6 per unit on plastics. O d. offer a subsidy of $6 per unit on plastics. Figure 10-6 100 Social Cost Supply Demand 200 300 400 500 QUANTITY (Units of plastic) 600op Women's.. ogand v y Home ourses talog and Study Tools ntal Options lege Success Tips eer Success Tips ENDED FOR YOU ULTS vated by Focusing mes Feedback << C Logout CENGAGE MINDTAP Homework (Ch 08) 3. Relationship between tax revenues, deadweight loss, and demandelasticity PRICE (Dollars per windbreaker) 60 55 The government is considering levying a tax of $25 per unit on suppliers of either windbreakers or bucket hats. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for windbreakers is shown by Dw (on the first graph), and the demand for bucket hats is shown by DB (on the second graph). 50 Suppose the government taxes windbreakers. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S + Tax) shifted up by the amount of the proposed tax ($25 per windbreaker). 45 On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax…PDemand QDemand PSupply QSupply $10 0 $1 2 $9 3 $2 4 $8 6 $3 6 $7 9 $4 8 $6 12 $5 10 $5 15 $6 12 $4 18 $7 14 If the Government creates a quota of 6 units to reduce the consumption of the dangerous product, what will the price of the good be in the marketplace? How much deadweight loss is there? How much of the deadweight loss came from the consumers?
- After the pandemic, if the city of Pasadena increased sales tax by 1% to help pay for some of the economic recovery efforts, this would be considered a O Proportional tax O Headcount tax O Progressive tax O Regressive taxDaniel Patrick Moynihan, the late senator fromNew York, once introduced a bill that would levy a10,000 percent tax on certain hollow-tipped bullets.a. Do you expect that this tax would raise muchrevenue? Why or why not?b. Even if the tax would raise no revenue, why mightSenator Moynihan have proposed it?The graph shown demonstrates a tax on buyers. Before the tax was imposed. sellers produced for each one sold A 6: $24 B) 6: $22 9: $30 9: $38 a 34 30 22 18 6 E₁ 6 10 DI D₂ units and received