I Suppose that the market for automobiles has the following supply and demand schedules d) ) ) Price of car Quantity demanded Quantity supplied (thousands ) (thousands ) I $20,000 120 45 $21,000 110 50 ' $22,000 100 55 $30,000 Using this information , draw the demand curve and the supply curve for automobiles What is the equilibrium price and quantity for automobiles ? Assume the government levies a tax of $3000 per car. What is the price that consumers will pay for a car now ? Has the price that consumers pay risen by the full amount of the tax ? Explain why . What is the price received by automakers ? Illustrate the effect of this tax in your diagram from part a. Calculate the government revenue raised by this tax. Is the market efficient , with the $3000 excise tax ? Explain .Illustrate your answer with a diagram . I In each of the following cases , explain whether the incidence of the tax falls more heavily on consumers or produces I) b) The government imposes a tax of $0.75 per bottle on bottled water .As a result ,the number of bottles sold decreases by 70,000 . With the tax, consumers are paying $1.25 per bottle , which is $0.25 more than they were paying without the tax. The government imposes an excise tax the sale of all movie tickets sold . Before the tax was imposed , theaters sold a total of 400,000 tickets per year at a price of $15 per ticket . With the tax, moviegoers now pay $16.50 per ticket and the theaters receive $13.50 for each ticket sold . Because of the tax, ticket sales drop to 300,000 tickets per year