question: Which of the following statements is most true? A) Producers will pay the entire tax. B) Consumers will pay 1/3 of the tax. C) Producers will pay 1/3 of the
Q: In the market for candy, researchers have estimated the following demand and supply curves. Demand:…
A: Equilibrium is attainable at such a situation where Qd=Qs. Please find the images attached below for…
Q: With the help of appropriate diagrams, explain how a tax can be used to reduce the consumption of a…
A: Tax are contribution to goverment which are levied on individual as well as or a firm which are…
Q: The figure below shows a market of good C. Suppose that the government levied a tax on C. Answer…
A:
Q: 15 Price $ 10 5 10 Quantity (gallons)
A: In a market, government receives a tax revenue equals to the multiplication of tax rate and quantity…
Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the change…
A: The consumer surplus is the area below the demand curve and above the price. Producer Surplus is the…
Q: In your own words, briefly explain the concept of deadweight loss as it relates to the tax policy
A: Deadweight Loss:- The concept "deadweight loss" is used to explain the discrepancy between a…
Q: Suppose that the government imposes a tax on cigarettes, use the diagram below to answer the…
A: A tax is an obligation to government by residents of a country for consumption and production. It is…
Q: If buyers are required to pay a tax on top of the price, buyers' willingness to pay will:…
A: The demand is not only the willingness to purchase a commodity by an individual, but as well as the…
Q: Suppose that the government imposes a tax on cigarettes. Use the diagram in the photo below to…
A: Consumer surplus is the area under the demand curve and above the market price. Whereas, the…
Q: What is the lost consumer surplus due to the tax (in $millions)?
A: The lost consumer surplus is this yellow area Try find this area.
Q: a. Before the tax, the equilibrium quantity is units and equilibrium price is $ After the tax, the…
A: Note: Since you have posted a question with multiple subparts, we will solve the first three…
Q: If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?
A:
Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…
A: Equilibrium refers to the point where demand and supply intersect each other.
Q: government is not able to decide whether it will be consumers or producers will pay a tax.
A: To find : Why government can't decide who will pay tax.
Q: Suppose the government imposes an excise tax on commercial fans. The black line on the following…
A: Consumer Surplus (CS) is the area below the demand curve (dd) and above the price of the goods. It…
Q: If the government removes a tax on a good, then the quantity of the good sold will______.
A: The answer to the question is as follows :
Q: Assume that sugar-based soft drinks are produced in a market shown on the graph above. Answer the…
A: Sales tax: It is the cost on a commodity that is being imposed by the government to discourage the…
Q: The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium…
A: A tax shift the supply curve leftward the difference between the price buyer pays and the price that…
Q: $12.00 tax So R $9.00 $7.00 $6.00 w D
A: Before tax area starts from.W and ends at V.
Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…
A: Consumer surplus after tax = ½ * (18 max price - 12 $ after tax price paid ) * (10 qty afte tax - 0)…
Q: The following graph shows the market for the long-distance bus rides. In the absence of taxes, the…
A: A tax on the given market will reduce the supply and shift the supply curve to the left(Black line).…
Q: The following graph shows the market for the long-distance bus rides. In the absence of taxes, the…
A: Tax on bus service providers decrease supply by $2 at each level of quantity.
Q: The following graph depicts a market where a tax has been imposed. P. was the equilibrium price…
A: From the given graph, we can say that the “A +E” is the total amount of producer surplus and…
Q: The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium…
A:
Q: Use the following information to answer the following questions. The following graph depicts a…
A: Tax is a kind of externality that creates distortions in the market equilibrium. When the market was…
Q: Using the following diagram (the equilibrium quantity is 5.5, the supply curve intersects the price…
A: a. P=7.5 Q=3.5
Q: Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves…
A: Taxes are used by all governments, whether national or municipal, to fund public initiatives such as…
Q: Economics Question
A: a. The equilibrium price can be calculated by equating the given demand and supply function as…
Q: The figure below shows a market of good C. Suppose that the government levied a tax on C. If the…
A: The markets are the place where the buyers and the sellers of various goods and services tend to…
Q: Choose one of the following examples and explain whether you think that the government should ban…
A: Banning any product is not the ultimate solution to any of the issue because it will create a…
Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…
A: Here, it is given that the government imposes tax on cigrette that shifts the supply curve to the…
Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves…
A: The demand and supply curve before tax are given below. The intersection of demand and supply gives…
Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Consider the market for mountain bikes .The following graph shows the demand and supply for mountain…
A: Equilibrium price and quantity before tax are $80 and 360 units respectively Consumer surplus before…
Q: S. A Pc Pe C P, E Q. Q
A: When government imposes tax on suppliers for producing the good, supply curve decreases and shifts…
Q: Which one of the two policies, a tax on pork meat consumption, or a tax on pork meat production, is…
A: Most economists believe that a perfectly (PC) competitive market which is devoid of any government…
Q: Question: 2 The government is interested in imposing a tax to generate revenue X. It is considering…
A: Consumer surplus is the difference between the consumer's maximum willingness to pay and the actual…
Q: Instead, suppose the government taxes smartphones. The following graph shows the annual supply and…
A: Case I Case IILeather jacket…
Q: The following graph shows the market for the long-distance bus rides. In the absence of taxes, the…
A: We have given following graph
Q: Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 30 billion…
A: It is given that coal producers are taxed, the quantity sold before tax is 30 billion cases of coal…
Q: The difference between a tax and a subsidy is when the government places a tax on the producers of a…
A: We have to find tax and subsidy .
Q: If tax incidence is not affected by whether the government makes buyers or sellers pay the tax then…
A: In a market, governement imposes tax on the exchange of goods and services between seller and buyer…
Q: When the government places a tax on the producer of a good or service both the supply and demand…
A: Option D is correct The supply curve for the good or service shifts to the left.
Q: In the following table, indicate which areas on the previous graph correspond to each concept. Check…
A: Producer surplus refers to the difference between the maximum willingness price of the consumer and…
Use the graph to answer the following question:
Which of the following statements is most true?
A) Producers will pay the entire tax.
B) Consumers will pay 1/3 of the tax.
C) Producers will pay 1/3 of the tax.
D) Consumers will pay the entire tax.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- ut Figure 6-13 Price F1 Price 191-4 on this page 2 W F2 # (a) 3 (c) E 80 fer to Figure 6-13. In which market will the maiority of a tax be paid by the buyer? F3 Quantity $ 4 Quantity R Price F4 Price 5 0 F5 (b) (d) 6 D F6 Quantity D Quantity & 7 F7 8 DII F8If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal, producers receive net of the tax will equal and the price that 12 S 11 10 B 6 10 20 30 40 50 60 70 80 90EOC 9.01 If the government decides to increase the tax on gasoline from $0.10 to $0.12 per litre, what happens to the deadweight loss from this tax? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. It rises by more than 20%. a b It rises by less than 20%. It rises exactly 20%. Deadweight loss will not change.
- Why does the government ass excise taxes to certain products?Price (dollars per hour) 7.00 6.60 6.00 5.60 5.00 0 1 2 3 4 5 6 7 8 Quantity (thousands of frisbees) Figure 6.3.1 OB) $5.60. S + tax Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed. On each frisbee, the sellers' burden of the tax is OA) $0.60. OC) $0.40. S OD) $6.60.Why is gasoline heavily taxed? Explain
- Suppose a $1 excise or commodity tax is placed on the purchasers of cans of soda. Use the graph to illustrate the impact this tax would have on the soda market and answer the questions. Be certain to shift the entire curve, endpoint to endpoint. Price per can (5) 10 9 8 7 3 2 1 0 1 deadweight loss: $ 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Calculate the deadweight loss of the tax. Enter the answer in thousands. Supply Demand deadweight loss: $ 0123456789 10 11 12 13 14 15 16 17 18 19 20 Cans of soda per day (in tens of thousands) Demand Calculate the deadweight loss of the tax. Enter the answer in thousands. The tax would affect a household's Choose the answer that best describes the impact this tax would have on a household's economic income and whether it would cause a large change in the household's consumption of soda. This sort of change in behavior is called tax shifting. O uses side, but tax shifting is not likely to occur. O…Figure 8-3 The vertical distance between points A and B represents a tax in the market. PRICE 56822388& 44 20 24 20 12 Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Refer to Figure 8-3. Suppose a 20 th unit of the good were sold by a seller to a buyer. Which of the following statements is correct? a. For the 20 th unit, the difference between the buyer's value and the seller's cost is less than the tax per unit. b. For the 20 th unit, the difference between the buyer's value and the seller's cost is equal to the tax per unit. c. For the 20 th unit, the difference between the buyer's value and the seller's cost is greater than the tax per unit. d. It makes sense for the buyer to buy and for the seller to sell the 20 th unit, with or without the tax in place.What is producer and consumer surplus AFTET tax?
- The figure below represents a market where the government has imposed a $1 per-unit tax on the suppliers of gasoline. Use it to answer the question below S2 A S1 P2* P1* G Q2* Q1* What area represents the portion of the tax that is paid by the producers? O G+F+E+H+ O B+C+G+F O D+E O E O G+F+E O G+FQuestion 36 Consider the following market for thingamabobs: Figure 3 P S 10 20 30 40 50 60 70 Q If a $2 per unit tax is imposed on this market, what will the new equilibrium quantity be? 14- 12- 10 8 6- 4- 2-What is an indirect tax give two examples in economics