PRICE (Dollars per scooter) First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. 300 270 Demand 240 210 180 150 120 90 Supply 60 30 30 0 Before Tax 0 140 280 420 560 700 840 980 1120 1260 1400 QUANTITY (Scooters) Equilibrium A Consumer Surplus Producer Surplus Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $120 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer cumplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss.

PRICE (Dollars per scooter) First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. 300 270 Demand 240 210 180 150 120 90 Supply 60 30 30 0 Before Tax 0 140 280 420 560 700 840 980 1120 1260 1400 QUANTITY (Scooters) Equilibrium A Consumer Surplus Producer Surplus Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $120 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer cumplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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LIKE BlazerNET Cole ✓ My Home Courses Rental Options × LKB Homework (Ch 08) X Catalog and Study Tools College Success Tips Help ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=59828018170010 CENGAGE MINDTAP Career Success Tips Give Feedback « Homework (Ch 07) 8. Total economic surplus PRICE (Dollars per headset) 250 225 The following graph plots the supply and demand curves in the market for VR headsets. 200 175 Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. 150 125 100 75 50 25 MindTap - Cengage Le X 0 0 Demand Supply + 30 The following graph p X 60 90 120 150 180 210 240 QUANTITY (Millions of headsets) Total surplus in this market is $ Press ^F to exit full screen 270 Answered: 4. Total ec X ★ Mind Tap - Cengage Le X 300…
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