Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 4, Problem 4.4.5PA
To determine
The deadweight loss by the tax.
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Suppose the Canadian government has decided to place an
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Round to the nearest 10.
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8
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80
70
60
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2
3
Supply
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4
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9 10
Suppose the Canadian government has decided to place an
excise tax of $20 per tire on producers of automobile tires.
Excise taxes are also called sales or commodity taxes.
Previously, there was no excise tax on automobile tires. As a
result of the excise tax, producers of tires, such as
Bridgestone and Michelin, are going to alter their tire prices.
The graph illustrates the demand and supply curves for
automobile tires before the excise tax.
Please shift the appropriate curve or curves on the graph to
demonstrate the impact of the new tax.
150
140
130
120
Price
888
110
100
90
Supply
80
00
60
50
°
1
2
3
4
5
Quantity
What is the price consumers pay for a tire post tax? Round to
the nearest 10.
70
288
price paid by consumers: $ 100
Demad
10
6
7
8
9
10
Suppose the Canadian government has decided to place an
excise tax of $20 per tire on producers of automobile tires.
Excise taxes are also called sales or commodity taxes.
Previously, there was no excise tax on automobile tires. As a
result of the excise tax, producers of tires, such as
Bridgestone and Michelin, are going to alter their tire prices.
The graph illustrates the demand and supply curves for
automobile tires before the excise tax.
Please shift the appropriate curve or curves on the graph to
demonstrate the new equilibrium.
What is the price consumers pay for a tire post tax? Round to
the nearest 10.
price paid by consumers: $
What is the price producers receive for a tire net of taxes?
Round to the nearest 10.
price received by producers: $
Price per tire
150
140
130
120
110
100
90
80
70
60
50
0
1
2
3
Supply
Demand
4
5
Quantity of tires
6
7
8
9
10
Chapter 4 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Prob. 4RQCh. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - What is economic efficiency? Why do economists...Ch. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - Prob. 4.4.4RQCh. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
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