The graph below represents the market for tubs of yoghurt. Answer the following questionsassuming a positive per-unit tax is placed on tubs of yoghurt.PS8.5085.5025(a) The per-unit tax is placed on50 55(b) The size of the tax is $ [Select][Select]Buyersthat sellers receive after the tax is $ [Select]80 85(c) The price that buyers pay after the tax is $ [Select](d) The quantity traded with the tax in place isreceive $ [Select](e) After the tax, buyers will pay $ [Select]relatively more [Select](f) In the end, buyers pay [Select]D2Q[Select]✓ relative to the quantity traded without tax.per tub.✓ less per tub.per tub.than sellers.per tub. The pricetubs leading tomore per tub. Sellers willbecause their demand curve is

The tax burden is shared by the buyer and seller based on the prevailing elasticity of demand and…

(b) The size of the tax isS $ (c) The price that buyers pay after the tax is $ [Select] that sellers receive after the tax is $ [Select] (d) The quantity traded with the tax in place is [Select] [Select] (e) After the tax, buyers will pay $ [Select] receive $ [Select] per tub. V✓ relative to the quantity traded without tax. less per tub. per tub. per tub. The price tubs leading to more per tub. Sellers will

(b) The size of the tax isS $ (c) The price that buyers pay after the tax is $ [Select] that sellers receive after the tax is $ [Select] (d) The quantity traded with the tax in place is [Select] [Select] (e) After the tax, buyers will pay $ [Select] receive $ [Select] per tub. V✓ relative to the quantity traded without tax. less per tub. per tub. per tub. The price tubs leading to more per tub. Sellers will

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 4QP

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