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
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