History Bookmarks Profiles Tab Window Help L O C C IC S MI L / C / B & C O N C | Bb 1 86 1 CE | AD A AT / c : x c staticb/ui/evo/index.html?deploymentld=59828119415547787292595253&elSBN=9780357133606&id=1256835640&snapshotld=25331 CENGAGE |MINDTAP omework (Ch 08) 5. Effect of a tax on buyers and sellers The following graph shows the daily market for shoes. Suppose the government institutes a tax of $23.20 per pair. This places a wedge between the price buyers pay and the price sellers receive. (?) 100 90 80 Supply 70 60 Tax Wedge PRICE (Dollars per pair) 40 20 10 Demand 40 60 70 80 90 100 10 20 30 QUANTITY (Pairs of shoes) OCT 255 2 stv 19 O 435640&5imp3h0il.:l:253 I ."o CENGAGE i MINDTAP Homework (Ch 08) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Day Price Sellers Receive (Pairs of shoes) (Dollars per pair) (Dollars per pair) [ZS :ll:] Before Tax E After Tax l: K Using the data you entered in the previous table, calculate the tax burden that fails on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity Buyers [:1 _. Sellers I: V The burden of the tax fails more heavily on the V elastic side of the market. Save 8. Continue Continue without saving