Hello Tutors,

Please assist me with this problem.

The chart there is from #1 fictional data

I would like a step by step explanation and shown visually if possible

Let me know if there are any thing I can assist or provide you with.

Thank You and Take Care

Problem 3 2|] oints Sales Ti! Incidence Draw a new graph using the ctional data from #1 make sure it covers most of a page. 0n this problem, you will analyze a possible tax on electric cars. Start by analysing the tax using the graphical method [a-d}, then use the elasticity method (e-b]. It's ne if your visual estimates based on the graph don"t exactly match the values you get using elasticities. Demand for elecn'ic sedans IIEE_ mono a} What's the equilibrium price and quantity of electric sedans? b} Suppose the government imposed a tax of $lllill per electric sedan. Show the effect of the tax increase on the graph. c} What's the new price that consumers will pay? How much will producers receive after the tax? d} How much of the S ltltlll tax will be paid by consumers? Producers? Now use the elasticity method to answer the same questions. Your answers probably won't be exactly the same as the answers you got from the graph, but theyr should be somewhat close. e} Calculate the price elasticity of demand and supply using the midpoint formula. Use $3,- as PI and S as P2. Show your work. t] Using the elasticities. how much of the $l, tax will be paid by consumers? How much will be paid by producers. g} Find the new price that consumers will pay? b} How much will producers receive per car after the tax? Let's think about the tax revenue collected by the government. i} 1|What would happen to the number of electric cars sold? Use either the graph or elasticity to estimate the new equilibrium quantity. How much tax revenue will this tax generate? Show tax revenue on yoilr graph for full credit, with areas representing tax paid by consumers and producers clearly labeled