Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following diagram: Tax Incidence Surplus Measures . g SE INGS Tax imposed on: Supply Demand : Excise Tax (0 $20) 0,00 . Relatively

image text in transcribed
Given the following diagram: Tax Incidence Surplus Measures . g SE INGS Tax imposed on: Supply Demand : Excise Tax (0 $20) 0,00 . Relatively Elastic Relatively Elastic Perfectly Elastic a CALCU LATI 0N5 3.0 4.0 5.0 6.0 7.0 8.0 9 D . Quantity {thousands per week) Quantity $50.00 4,000 $50.00 4,000 Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 (this corresponds to a vertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and impose a $10 excise tax on buyers. Use the Surplus Areas switch above the graph as needed. a. What is the equilibrium price? $ |:| (Report your answer to two decimal places) b. What is the equilibrium quantity? |:| (Report your answer as a whole number) c. What is the amount of the consumer surplus? $ |:| (Report your answer as a whole number) d. What is the amount of the producer surplus? $ |:| (Round your answer to a whole number} e. How much consumer and producer surplus is transferred to the government as tax revenue? $ |:| (Roundyour answer to a whole number) f. What is the total amount of economic surplus? $ |:| (Round your answer to a whole number) 9. What is the amount of the deadweight loss? $ |:| (Report your answer as a whole number)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing

Authors: Philip R Cateora

14th Edition

0073380989, 9780073380988

More Books

Students also viewed these Economics questions

Question

7. summarize the findings regarding coaches goal-setting practices.

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago