Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $10.00 and the vertical intercept is $83.00 for the demand curve. Represent a $16.00 tax that is paid by sellers. Click the Tax Burden switch above the graph to show areas that represent some of the effects on consumer and producer surplus. Report all answers as positive values to two decimal places. a) How much revenue does the government earn from this tax? $1 b) How much of the government's revenue would have been consumer surplus had there not been a tax? $ c) How much of the government's revenue would have been producer surplus had there not been a tax? $

Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $10.00 and the vertical intercept is $83.00 for the demand curve. Represent a $16.00 tax that is paid by sellers. Click the Tax Burden switch above the graph to show areas that represent some of the effects on consumer and producer surplus. Report all answers as positive values to two decimal places. a) How much revenue does the government earn from this tax? $1 b) How much of the government's revenue would have been consumer surplus had there not been a tax? $ c) How much of the government's revenue would have been producer surplus had there not been a tax? $

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 7PA

See similar textbooks

Similar questions

Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or Â£0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or Â£0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about Â£0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16
The graph shows the market for backpacks. Price (dollars per backpack) 22- 20+ 18- 16- 14- 12+ 10- 8- မှာ 0 100 S D 200 300 400 500 600 700 800 Quantity (backpacks per day) If a sales tax of $4 a backpack is imposed, calculate the tax burden. The tax burden is $ Type a day.
The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic. Calculate the consumer and producer share of tax burden and explain it on the graph?
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 tax
what is market f suppose that if your income is 10000 your tax is 1000 but if your income is 50000 your tax is 4000 such a tax is ANSWR IN DETAIL
The govemment is considering imposing taxes onthe sellers of certain classes of products. The first tax they are considering is a tax on 2% milk. The second is a tax on all dairy products. The third is a tax on all food products. Which of these three taxes would you expect to have the largest impact on the sticker prices of the taxed products? Explain.
Find out NIT if indirect tax is $72 and subsidies $40?
The graphs below illustrate the market for a product on which an excise tax has been imposed by government. $14+ Price 11 W S+T A 8 V SAU 2 0 2 4 S 678 10 12 14 16 Quantity Refer to the above graph. The excise tax per unit shouldered by the buyers is $ Please input the numerical answer without the $ sign.
I# u tax Muvenu will be. Size is AB. then te tax 22 16 10 6. Demand 2. 00 600 a) $600 b) $ 800 5500 e)$700
INCREASE IN TAX ON ALCOH OL AND TOBACCO Specific excise duty on alcohelle bever ges and tobacco products will increase by 8% INCREASES WIT MOUT BEER 14c per 340ml can UNFORTIFIED WNE 56e per 7 50mi bottle FORTIFIED WINE 44c per 750ml bottle SPARKLING WINE 86c per 750ml bottle APPLE BEER AND ALCOHOLIC FRUIT DRINKS 14c per 840ml can STRONG BEVERAGE/ORINKS RS,50 per 750ml bottle 1 Excise duty is also known as 2 In your opinion, do you think it was the right decision to increase excise taxes? Motivate your answer.
PA P3 $ P2 P₁ 0 ош A Di E 93 B 92 Quantity U 91 Demand Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P1. If an excise tax raises the price from P1 to P2, the excess burden of the tax is area A) P3AP4. B) P1FBP2. _C) P1CBP2._____D) BFC. E) P2BP3.
the vertical distamce betwen pom A amd B nepresents a tax im the manket. supply 12 1 Demand 35 50 the loss comsumu to aF Teu the taxes will. be a) 50 b) 1os d)170 e) 250 300 1O