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Price Quantity Demanded Quantity Supplied Quantity Supplied after (1000s gallons/day) (1000s gallons/day) Tax 0.50 10 4 1.00 9 6 1.50 8 8 2.00 7 10
Price Quantity Demanded Quantity Supplied Quantity Supplied after (1000s gallons/day) (1000s gallons/day) Tax 0.50 10 4 1.00 9 6 1.50 8 8 2.00 7 10 2.50 6 12 3.00 5 14 3.50 4 16 The table above shows the market for Chlorine. The government has imposed a tax of $1.50 on each gallon of Chlorine. a. What are the equilibria (price and quantity) before and after the tax? b. How much tax revenue will the government collect from this tax? c. How much of the tax is paid by consumers? How much is paid by producers? Which is more elastic, the supply or demand for Chlorine
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