80F3What is an excise tax?O Taxes applied to specific goods or services as a source of revenueO A tax applied broadly to all goodsO A tax on any exercise related equipmentO All answers are correctQF4OF5MacBook AirF68F7

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What is an excise tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

80
F3
What is an excise tax?
O Taxes applied to specific goods or services as a source of revenue
O A tax applied broadly to all goods
O A tax on any exercise related equipment
O All answers are correct
Q
F4
O
F5
MacBook Air
F6
8
F7

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GRAPH ($) Price 90 $90.00 8288 288 2 80 70 60 50 40 30 20 10 0 $50.00 1.0 2.0 3.0 6.0 5.0 4.0 Surplus Measures 7.0 S 8.0 9.0 Off Quantity (thousands per week) 0 SETTINGS Tax imposed on: Excise Tax (0-$20) Demand Perfectly Inelastic Supply Less Elastic CALCULATIONS No Taxi With Tax Supply Relatively Elastic Perfectly Elastic Demand Price Paid $50.00 $50.00 0.00 Relatively Elastic Perfectly Elastic Quantity Reset 4,000 4,000 Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 thousand units (this corresponds to a vertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and there is no excise tax (set to $0). Use the Surplus Areas switch above the graph as needed.
35. Oman started imposing a 15% tax on cigarettes. As a result, product’s price went up, and the sales of cigarettes went down by 35%. The determinant of demand discussed in this scenario is ____________. a. Customer preference b. Government policy c. Taste and preference of the consumer d. Income of the consumer
New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes in New York City is $10.60. The combined state and city taxes are $5.95 a pack. The average income of smokers is less than that of non-smokers Draw a graph to show the effects of the $5.95 tax on the buyer's price, the seller's price, the quantity of cigarettes bought, and the tax revenue. Does the buyer or seller pay more of the tax? Why? The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S+ tax. Draw a point at the new equilibrium quantity to show the price paid by buyers. Label it 2. Draw a point at the new equilibrium quantity to show the price received by the seller. Label it 3. Draw a shape that represents the tax revenue received by the government. The pays more of the tax because OA. buyer; sellers can always pass…
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