Question
Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $13.00and the vertical intercept is $76.00for the demand curve.Represent a $8.50tax
Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $13.00and the vertical intercept is $76.00for the demand curve.Represent a $8.50tax that is paid by sellers.Click the Tax Burden switch above the graph to show areas that represent some of the effects on consumer and producer surplus.
Report all answers as positive values to two decimal places.
a) How much revenue does the government earn from this tax?$
b) How much of the government's revenue would have been consumer surplus had there not been a tax (how much of the total tax revenue is paid by consumers)?$
c) How much of the government's revenue would have been producer surplus had there not been a tax (how much of the total tax revenue is paid by producers)?$
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