Question 4 The government of Econoland is trying to change soft drink consumers' behaviour. In particular, it is trying to find ways to make soft drinks in glass bottles less attractive than soft drinks in plastic bottles as glass is harder to recycle than Not yet plastic. It is studying the impact of placing a tax on soft drinks in glass bottles. It is planning to use any tax revenue generated by this tax towards its recycling facilities. You have been asked to help with their analysis. answered Marked out of 3.00 10.00 2.80 2.60 Flag 2.40 t=0.60 question 2.20- 2.00 1.80 1.60 1.40 1.20 1.00 .80 -60 .40- 20- 100 200 300 400 500 600 700 800 960 1060 1160 1260 Bottles of Soft Drinks per Day Using the above information and figure, complete the below statements, filling in your final, complete answer in the space provided to the right of the statement. Do not show your work or calculations. 7 # SX'S a.) Prior to the tax, the quantity of soft drinks sold per day is equal to b.) Prior to the tax, the price of a soft drink is equal to c.) If a tax of $0.60 per bottle was imposed and the quantity of soft drinks sold per day was as found in a.), this tax would daily generate tax revenue equal to d.) If a tax of $0.60 per bottle was imposed, the quantity of soft drinks sold per day is now equal to e.) If a tax of $0.60 per bottle was imposed, the price of a soft drink is now equal to f.) If a tax of $0.60 per bottle was imposed, the actual tax revenue earned from this tax will be equal to g.) If a tax of $0.60 per bottle was imposed, the amount of the tax paid by consumers is equal to h.) If a tax of $0.60 per bottle was imposed, the amount of the tax paid by producers is equal toQuestion 4 The government of Econoland is trying to change soft drink consumers' behaviour. In particular, it is trying to find ways to make soft drinks in glass bottles less attractive than soft drinks in plastic bottles as glass is harder to recycle than Not yet plastic. It is studying the impact of placing a tax on soft drinks in glass bottles. It is planning to use any tax revenue generated by this tax towards its recycling facilities. You have been asked to help with their analysis. answered Marked out of 3.00 10.00 2.80- 2.60 Flag 2.40 t=0.60 question 2.20 2.00 1.80 1.60 1.40 1.20 1.00 .80 .60 .40 .20 100 200 300 400 500 600 700 800 900 1060 1160 1260 Bottles of Soft Drinks per Day Using the above information and figure, complete the below statements, filling in your final, complete answer in the space provided to the right of the statement. Do not show your work or calculations. 7 # e.) If a tax of $0.60 per bottle was imposed, the price of a soft drink is now equal to f.) If a tax of $0.60 per bottle was imposed, the actual tax revenue earned from this tax will be equal to g.) If a tax of $0.60 per bottle was imposed, the amount of the tax paid by consumers is equal to h.) If a tax of $0.60 per bottle was imposed, the amount of the tax paid by producers is equal to i.) Consumers will pay more of the tax as demand for good becomes more j.) Producers will pay more of the tax as supply of the good becomes more
