how to solve 5-
5 Refer to the interactive below: Tax Burden In. GRAPH Tax Burden : On SETTINGS Reset points Skipped ($) Price Tax imposed on: Supply Demand 90 $90.00 Excise Tax (0 - $20) 0.00 80 eBook S 70 Demand 60 Perfectly Relatively References Inelastic Elastic 50.. . . . . . Relatively Elastic 40 Supply 30 Less Perfectly Elastic Elastic 20 $20.00 Relatively Elastic 10 . . . . . BEER CALCULATIONS 0 1.0 3.0 4.0 5.0 6.0 8.0 9.0 Quantity Price Paid Quantity (thousands per week) Burden on No Tax Burden on Tax Revenue Welfare Loss $50.00 4,000 the Consumer the Producer (Deadweight Loss) Tax Paid Tax Paid + With Tax $50.00 4,000 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept of demand curve is $90. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. If a $10 tax paid on sellers is implemented, the buyer will pay $ and the burden of the tax ( (Click to select) Report the price to two decimal places.5 Refer to the interactive below: Tax Burden In. GRAPH Tax Burden On SETTINGS Reset points Skipped ($) Price Tax imposed on: Supply Demand 90 $90.00 Excise Tax (0 - $20) 0.00 80 Book S 70 Demand In 60 Perfectly Relatively References Inelastic Elastic 50. . . . Relatively Elastic 40 Supply Less Perfectly 30 Elastic Elastic 20 $20.00 Relatively Elastic 10 EEd CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity Price Paid Quantity (thousands per week) No Tax Burden on Burden on Tax Revenue Welfare Loss $50.00 4,000 the Consumer the Producer (Deadweight Loss) Tax Paid Tax Paid + With Tax $50.00 4,000 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept of demand curve is $90. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. If a $10 tax paid on sellers is implemented, the buyer will pay $ and the burden of the to v (Click to select) Report the pi is entirely paid by buyers is entirely paid by sellers b) Suppose the is shared by buyers and sellers to become less elastic (and even perfectly inelastic) with the original equilibriumInstructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept of demand curve is $90. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. If a $10 tax paid on sellers is implemented, the buyer will pay $ and the burden of the tax (Click to select Report the price to two decimal places. b) Suppose the demand curve gradually changed to become less elastic (and even perfectly inelastic) with the original equilibrium remaining at (Q,P) = (4000, $50) and no other changes. Complete the following statements that describe the effects of this change in demand elasticity. i) The quantity bought and sold does not change decreases increases and then decreases increases .decreases and then increases ii) The government's revenue does not change decreases decreases and then increases increases .increases and then decreases iii) The consumers' share of the tax burden, measured as percentage of government's revenue derived from consumers, decreases and then increases increases and then decreases increases .does not change decreases iv) The producers' share of the tax burden, measured as percentage of government's revenue derived from producers, O increases increases and then decreases decreases and then increases .does not change decreases6 Refer to the interactive below: Tax Burden In. GRAPH Tax Burden Off SETTINGS Reset points ($) Price Supply Demand Skipped Tax imposed on: 90 $90.00 Excise Tax (0 - $20) 0.00 80 S eBook 70 Demand n 60 Perfectly Relatively Inelastic References Elastic 50 . . . . Relatively Elastic 40 Supply 30 Less Perfectly Elastic Elastic 20 $20.00 Relatively Elastic 10 EEEE CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity Price Paid (thousands per week) Quantity No Tax $50.00 4,000 With Tax $50.00 4,000 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept of demand curve is $90. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. If a $10 tax paid on buyers is implemented, the buyer will pay $ and the burden of the tax ( (Click to select) Report the price to two decimal places.Refer to the interactive below: 6 Tax Burden In. GRAPH Tax Burden Off SETTINGS Reset points ($) Price Tax imposed on: Supply Demand Skipped 90 $90.00 Excise Tax (0 - $20) 0.00 80 S eBook 70 Demand 60 Perfectly Relatively Inelastic Elastic References 50.. . . Relatively Elastic 40 30 20 $20.00 10 . . . . . . . . . . . . . . . . Supply Less Perfectly Elastic Elastic Relatively Elastic EEEE CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity Price Paid Quantity (thousands per week) No Tax $50.00 4,000 With Tax $50.00 4,000 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept of demand curve is $90. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions a) If there is no tax, the equilibrium price is $50. If a $10 tax paid on buyers is implemented, the buyer will pay $ and the burden of the to v (Click to select) Report the pi is entirely paid by buyers is entirely paid by sellers b) Suppose the is shared by buyers and sellers to become less elastic (and even perfectly inelastic) with the original equilibriumInstructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept of demand curve is $90. Click the Tax Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions. a) If there is no tax, the equilibrium price is $50. If a $10 tax paid on buyers is implemented, the buyer will pay $[ and the burden of the tax (Click to select) Report the price to two decimal places. b) Suppose the demand curve gradually changed to become less elastic (and even perfectly inelastic) with the original equilibrium remaining at (Q,P) = (4000, $50) and no other changes. Complete the following statements that describe the effects of this change in demand elasticity. i) The quantity bought and sold decreases and then increases .increases and then decreases .does not change increases decreases ii) The government's revenue increases .increases and then decreases .decreases .does not change decreases and then increases iii) The consumers' share of the tax burden, measured as percentage of government's revenue derived from consumers, decreases .increases .does not change .increases and then decreases .decreases and then increases iv) The producers' share of the tax burden, measured as percentage of government's revenue derived from producers, does not change .decreases and then increases increases and then decreases increases decreases
