If a 10 cent tax is imposed on a supply curve with the function Qs = P - 2, the function representing the Qs + Tax line would be Select one: a. Qs+Tax = 2P - 9 b. Qs+Tax = P - 2.10 c. Qs+Tax = 2P - 7 d. Qs+Tax = P - 1.90
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- Consider the supply and demand functions graphed below. Р Demand Supply 20 50 80 100 Download the figure. Suppose a demand-side tax is imposed. As a result of the tax, the new equilibrium quantity is 50. What is the price paid by consumers? What is the price paid by producers? How much is the tax that was imposed? How much tax revenue is collected? Which side of the market pays more of the tax? This side of the market pays more of the tax because 10 LO 21 GA GAAfter the imposition of a tax, equilibtium is as the intersection of demand and supply+tax. By how mach does consumer expenditure change after the imposition of the tax? Price 10 8 5 0 6 7 10 S = tax D S QuantityConsider the market for gasoline, illustrated in the figure to the right. Suppose the government adds a $0.75 per gallon excise tax on gasoline, which shifts the supply curve from S, to S₂, as illustrated. What is the tax incidence? Consumers pay $ of the tax and producers pay $ of the tax. (Enter your responses rounded to two decimal places.) When the demand for a product is more elastic than supply, consumers pay of the tax on the product. the majority a minority Price (dollars per gallon) 5.50- 5.00- 4.50- 4.00- 3.50- 3.00- 2.50 2.00- 1.50- 1.00- 0.50- 0.00- S₂ S₁ 10 12 14 16 18 20 22 24 26 Quantity (billions of gallons)
- What is the tax incidence of an excise tax when demand is highly inelastic and highly elastic?What is the tax incidence of an excise tax when demand is highly inelastic? Highly elastic? What effect does the elasticity of supply have on the incidence of an excise tax? What is the efficiency loss of a tax, and how does it relate to elasticity of demand and supply?The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 75.00 Demand B 60.00. DE 45.00-- C F QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. Value Result Per-unit tax Equilibrium quantity before tax Price producers receive before tax Supply $ $ In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept S Consumer surplus after the tax is imposed Tax revenue after the tax is imposed Producer surplus before the tax is imposed A 0 0 [] B 0 U [] с 0 U [] D 0 E ? □ F 0 n □
- owing graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax ium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) Indicate the after-tax scenario. Demand Supply 6.50 - B. 5.00 3.50 - E QUANTITY (Pinckneys) Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity before tax Per-unit tax Price consumers pay after tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept B F Consumer surplus after the tax is imposed Producer surplus after the tax is imposed Deadweight loss after the tax is imposed PRICE (Dolars per pinckney)The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has Just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Demand Supply 16, 18 21.00 18.00 15.00 QUANTITY (Pinckneys) Complete the following table, given the information presented on the graph. Result Value Per-unit tax $6.00 Equilbrium quantity before tax Price producers recelve before tax $18.00 In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept D. Deadweight loss after the tax is imposed Consumer surplus after the tax is imposed Producer surplus before the tax Is imposed PRICE (Dotars per pinckney) 口□□To raise money for a new student union, the Student Snack 2.25 Bar charges a tax of $0.75 on each beverage. In the graph, Demand (500, $2.00) 2.00 the original demand curve for beverages is labeled (700, $1.75) 1.75 "Demand" and the shifted demand curve, which accounts for 1.50 the tax, is labeled "Shifted Demand." Use this graph to Shifted demand (500, S1.25) 1.25 answer the questions. Answer to the nearest cent. 00 For each soda, how much of the tax does the Student Snack 0.75 Bar pay? 0.50- Supply 0.25 1.75 100 200 300 400 500 600 700 800 900 Quantity For each beverage, how much of the tax do students pay? 1.75 ($) aoud
- Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine demand the seller’s price after tax. Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine the quantity after taxThe government places a tax on the purchase of socks. The following graph shows the market for socks before the tax. Assume that neither the demand curve nor the supply curve is perfectly elastic or perfectly inelastic. Use the green polygon (triangle symbol) to indicate the area that represents total spending by consumers before the government implements the tax. Then use the purple polygon (diamond symbol) to shade the area representing total revenue for producers in this case. (?) Price of Socks Demand Before Tax Quantity of Socks Supply Total Spending by Consumers Total Revenue for Producers image 1 The following graph shows the same market for socks, and the corresponding tax wedge.The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinke) Demand Supply 56.00--- 48.00- 40.00 D QUANTITY (Binkies) Complete the following table, given the information presented on the graph. Result Value Price producers receive after tax Per-unit tax $ $ Equilibrium quantity before tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Consumer surplus before the tax is imposed Deadweight loss after the tax is imposed Producer surplus after the tax is imposed ☐ ☐ C P ☐ U ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ E ☐ ☐ ☐ F ☐ ☐ ☐
