Question
In: Economics
Suppose there is a $15 per unit tax levied on sellers. Draw the after-tax supply curve.
Consider the market below
a. Suppose there is a $15 per unit tax levied on sellers. Draw the after-tax supply curve.
b. Plot the after-tax price received by consumers and the after-tax price paid by sellers.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose there is a $1.50 per unit tax levied on sellers
Consider the market below a. Suppose there is a $1.50 per unit tax levied on sellers. Draw the after-tax supply curve. Instructions: Use the tool provided (S2) to draw the after-tax supply curve. Be sure your endpoints are at Q = 0 and Q = 100 b. Plot the after-tax price paid by consumers and the after-tax price paid by sellers. Instructions: Use the tools provided to draw the after-tax price paid by consumers (After-tax Pc) and the after-tax price paid by...
Supply of good A is perfectly inelastic. Suppose a tax is levied on buyers. Draw a...
Supply of good A is perfectly inelastic. Suppose a tax is levied
on buyers. Draw a graph to show the impacts on the market for good
A. Your graph should indicate the CS, PS, tax revenue and DWL after
tax.
Suppose there is a $3.00 per unit subsidy given to consumers. Draw the after-subsidy demand curve.
a. Suppose there is a $3.00 per unit subsidy given to consumers. Draw the after-subsidy demand curve. Instructions: Use the tool provided (S2) to draw the after-subsidy demand curve. Be sure your endpoints are at Q = 0 and Q = 180. b. Plot the after-subsidy price paid by consumers and the after-subsidy price received by sellers. Instructions: Use the tools provided to draw the after-subsidy price paid by consumers (After-subsidy Pc) and the after-subsidy price received by sellers (After-subsidy Ps). c. Draw...
suppose that there is a tax of $5 per unit, and the demand curve is more...
suppose that there is a tax of $5 per unit, and the
demand curve is more elastic than the supply curve. Which of the
following statements could be true?
A. buyers pay $3 of the tax
B. buyers pay $1 of the tax
C. sellers pay $1 of the tax
D. sellers pay all of the tax
a) Suppose a tax on beans of $0.2 per can is levied on firms. As a...
a) Suppose a tax on beans of $0.2 per can is levied on firms. As
a result of the tax, the equilibrium price increases from $0.4 to
$0.5. What fraction of the incidence (tax burden) falls on
consumers? On firms? Suppose the supply elasticity is 0.4. What
must the demand elasticity be? (8 Points)
(b) If the demand function for orange juice is expressed as Q =
1000 − 400p, where Q is quantity in gallons and p is price...
On a graph, show the effect of a per unit tax on SELLERS of cigarettes. (This...
On a
graph, show the effect of a per unit tax on SELLERS of cigarettes.
(This requires you to think about the shape of the demand curve for
cigarettes. You can assume a sort of neutral supply curve. Indicate
the change in price and quantity from the tax. The consumer and
producer surplus after the tax, the tax incidence on buyers and
sellers and the deadweight losss. Who pays more of this tax?
On a graph, show the effect of a per unit tax on SELLERS of cigarettes. (This...
On a graph, show the effect of a per unit tax on SELLERS of
cigarettes. (This requires you to think about the shape of the
demand curve for cigarettes. You can assume a sort of neutral
supply curve. Indicate the change in price and quantity from the
tax. The consumer and producer surplus after the tax, the tax
incidence on buyers and sellers and the deadweight losss. Who pays
more of this tax?
On a graph, show the effect of a per unit tax on SELLERS of cigarettes. (This...
On a graph, show the effect of a per unit tax on SELLERS of
cigarettes. (This requires you to think about the shape of the
demand curve for cigarettes. You can assume a sort of neutral
supply curve. Indicate the change in price and quantity from the
tax. The consumer and producer surplus after the tax, the tax
incidence on buyers and sellers and the deadweight losss. Who pays
more of this tax?
Thank you!!
Assume a per unit tax is levied on gasoline in the amount of $3.00. Also assume...
Assume a per unit tax is levied on gasoline in the amount of
$3.00. Also assume that the burden of that tax on buyers is $2.00
while the burden of the tax on firms is $1.00. Graph and label the
following details surrounding the per unit tax. Use the coordinate
space provided in Figure 5. a. (1 point) The price buyers pay. Use
the label PB. b. (1 point) The price suppliers receive. Use the
label PS. c. (1 point)...
1. The demand for good B is perfectly inelastic. A sales tax is levied on sellers....
1. The demand for good B is perfectly inelastic. A sales tax is
levied on sellers. A(n) ________ in the elasticity of the supply in
the market for good B would tend to __________ tax revenue from
that tax.
a. increase; have no
effect
on d. increase;
decrease
b. decrease; decrease
e. increase; increase
c. decrease;
increase
2. Use the following information to answer the following
questions.
Market for flat-screen TVs:
Demand: Qd = 2,600 – 5P
Supply: Qs = –1,000 + 10P
Suppose a price...
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