Ne Ledler sares

Jolien inmen

$0>$

$0$ pareBaiveUse the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.

Graph Input Tool

Market for Wine

Quantity

$($Cases$)$

Demand Price

$($Dollars per case$)$

Tax

$($Dollars per case$)$

Suppose the government imposes a $$10-$per$-$case tax on suppliers.

At this tax amount, the equilibrium quantity of wine is

Now calculate the government's tax revenue if it sets a tax of $$0,$$$10,$$$20,$$$25,$$$30,$$$40,$ or $$50$ per case. $($Hint: To find the equilibrium quantity

after the tax, adjust the "Quantity" field until the Tax equals the value of the per$-$unit tax.$)$ Using the data you generate, plot a Laffer curve by using

the green points $($triangle symbol$)$ to plot total tax revenue at each of those tax levels.

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.