Check my w ($) Price Tax imposed on: Supply Demand 90 $90.00 80 Excise Tax (0 - $20) 0.00 70 60 Demand Perfectly Relatively 50 S Inelastic Elastic $50.00 Relatively Elastic 40 Supply 30 Less Perfectly 20 Elastic Elastic Perfectly Elastic 10 CALCULATIONS 0 1.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000 I Instructions: Type in the amount of a tax, and click Supply or Demand to choose whether the tax is imposed on sellers or on buyers. Then move the Demand or Supply sliders to change the elasticities of supply and demand. Set the tool to illustrate an $8 tax imposed on the buyers. Adjust the elasticity of demand so that the vertical intercept is $80. Adjust the supply elasticity so that the vertical intercept of the supply curve is $40. Answer the following questions: a. What is the price paid with this $8 tax? $ (answer to two decimal places) Prev 1 of 13 Next >