How does a Tax on Production affect a negatively sloped Demand curve or the Supply Curve? The supply curve shifts to the Left The supply curve shifts to the Right There is no shift, only movement along the Supply Curve The demand curve shifts to the left
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- How does a Tax on Production affect a negatively sloped Demand curve or the Supply Curve?
- The supply curve shifts to the Left
- The supply curve shifts to the Right
- There is no shift, only movement along the
Supply Curve - The demand curve shifts to the left
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- Rick Perry, trump's Energy Secretary proposed subsidies for coal industry. A first yea economics student would be much smarter than any trump appointee because the student knows that it makes economic sense O to impose a tax on the producers to reduce supply. O to give subsidies to consumers to increase demand for coal. O to give subsidies to producers to increase supply of coal. O to impose taxes on consumers to increase demand for coal.The incidence of a tax is determined by which side of the market is less sensitive to a change in price O who pays the tax out of pocket. whether the supply curve or demand curve shifts as a result of the tax. O how much tax revenue it generates. how much paperwork there is to complete.Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. Use the line drawing tool to draw a new supply curve reflecting a $30 per pound tax. Label this line 'STaxı Carefully follow the instructions above, and only draw the required object. (Enter all responses as whole numbers) The new price consumers will pay is $65 and the new price producers will receive is $ C Price 100- 95- 90- 85- 80- 75- 70- 65- 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- -O 2 STax 3 4 5 6 Quantity (thousands) -∞ 8 S D 9
- Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. Use the line drawing tool to draw a new supply curve reflecting a $30 per pound tax. Label this line 'STaxi Carefully follow the instructions above, and only draw the required object. (Enter all responses as whole numbers) The new price consumers will pay is $65 and the new price producers will receive is $ 35. The tax revenue that will be generated is $ Price 100- 95- 90- 85- 80- 75- 70- 65- 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 22 1 2 Stax 3 4 5 6 Quantity (thousands) 7 -o 8 S D 9Energy dnnKS has been causing dea th Senator Miller proposes 8 2 tax ( that on average cost $ 2. on the arnnks Senator cruz thinks is too nigh. in response, the Miller Bill was fixed to make it a $ I tax. DRAW A ORAPA. Locate equilibrium price and quantity. which letters reppsent the proaucer and oonsumer $urplus Z ata before the tax ? which repruent after the tax ? Did the surplus increase or decrease? why}ECON1000 - Principles of Economics 1 | S1 21/22 Time left 0:13:59 A tax is imposed on producers of a good. For a given supply curve, the more price elastic the demand for the product, the greater the tax incidence on uestion 16 t yet Swered ked out of Select one: a. producers.. b. the tax payer. C. consumers. O d. both consumers and producers equally. page Next page
- During a discussion several year; ago on building a pipeline to Alaska to carry natural gas, the U.S. Senate passed a bill stipulating mat there should be a guaranteed minimum price for the natural gas that would flow through line pipeline. The thinking behind the bill was that if private firms had a guaranteed price for their natural gas, they would be more willing to drill for gas and to pay to build the pipeline. Using the demand and supply framework, predict the effects of this price floor on fine price, quantity demanded, and quantity supplied. With the enactment of this price floor for natural gas, what are some of the likely unintended consequences in line market? Suggest some policies other than the price floor that he government can pursue if it wishes to encourage drilling for natural gas and fur a new pipeline in Alaska.Heip m/ultra/courses/_165411_1/cl/outline lyLab M... W WordCounter 5 Quizlet * Question Completion Status: QUESTION 13 Figure 6-25 1ice 10 Is 6. 4 1 Daftertade 10 20 30 40 50 60 70 80 quantity Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is O a. $5. O b.$2. Oc. $1. O d. $6. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers tv1. Assume that the demand for cigarettes is Qd=1600-30P and the supply of cigarettes is Qs=1400+70P: a. Calculate the equilibrium price and quantity and show them on a supplyand demand diagram. b. Suppose the government levies a $2 tax for each unit of cigarettes sold.Draw this on the diagram and calculate the new equilibrium price andquantity. c. Calculate the price elasticity of demand given these two price andquantity points. Is the demand for cigarettes price elastic or inelastic onthis part of the demand curve? Interpret the elasticity in words (i.e. If theprices rises by 10%, by what percentage will consumption fall?) d. On a graph, identify the tax revenue generated by this tax. e. Indicate each area on the graph with a letter and show in a table theconsumer surplus and the producer surplus before and after the tax. Also,indicate the deadweight loss associated with this tax. f. If your policy advisor boss wanted you to provide him/her witharguments in favor of this cigarette…
- 1. Consider the following figure to answer the following four questions. (Please note that the numbers on the vertical axis are 0, 5, 10, 15, 20, 25, and 30 and on the horizontal axis are 0, 10, 20, 30, 40, 50, and 60.) Excess Supply and Demand ww 1 54000 $25.00 530.00 $15.00 $100 30.00 Excess Supply B C Excess Demand D 1A. What is the price level at C and D? 1B. What is amount of excess demand between C and D at that price level? (Assume that at D the number is half way between 20 and 30 on the horizontal axis). (Show your math works.) 1C. What is the price level at A and B? ID. What is the amount of excess supply at that price level? (Assume that the quantities represented by A and C and between B and D are same) (Show your math works.)Government of Vacation Land is concerned about the increasing obesity rate in their country. To reduce the issue, they have proposed the following polices to reduce the consumption of soft drinks. Illustrate each of the proposed policies in a supply and demand diagram of the market ofsoft drinksa. A price floor on soft drinksb. A tax on soft drink consumersc. A subsidy to sugarcane framers that reduce sugar prices.Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. 100- 95- Use the line drawing tool to draw a new supply curve reflecting a $10 per pound tax, Label this line 'STax. 90- 85- Carefully follow the instructions above, and only draw the required object. 80- 75 70- 65- 60- 55 45- 40 35 30 25 20- 15 10- 10 Quantity (thousands) tv 30 ear AlI Ger MoreHOIn Teach Me Text Pages MacBook Air DII F10 80 F8 F7 F6 F5 F4 esc F2 F3 F1 $ % & ! @ 6 7 8 3 4 1 0 P W E R T Y Q ....
