Refer to the interactive below: Tax Burden LL. GRAPH Tax Burden On SETTINGS Reset ($) Price Tax imposed on: Supply Demand 90 S+T T Excise Tax (0 - $20) 6.50 80 $74.00 70 Demand Perfectly Inelastic 60 Relatively Elastic 50 Relatively Elastic 40 Supply Less Elastic 30 D Perfectly Elastic 20 Relatively Elastic $16.00 10 CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 Tax Revenue Burden on the Consumer Tax Paid Burden on the Producer Tax Paid Welfare Loss (Deadweight Loss) With Tax $52.69 3,551 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $16.00 and the vertical intercept is $74.00 for the demand curve. Assume there is initially no tax, and that a $6.50 tax is being proposed by policymakers. Report all answers to two decimal places. a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ c) How much of the total losses for consumers and producers are recovered as government tax revenue? $ 23081.54 d) Is there any surplus lost by either consumers or producers that is not recovered as revenue? yes Refer to the interactive below: Tax Burden LL. GRAPH Tax Burden On SETTINGS Reset ($) Price Tax imposed on: Supply Demand 90 S+T T Excise Tax (0 - $20) 6.50 80 $74.00 70 Demand Perfectly Inelastic 60 Relatively Elastic 50 Relatively Elastic 40 Supply Less Elastic 30 D Perfectly Elastic 20 Relatively Elastic $16.00 10 CALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 Tax Revenue Burden on the Consumer Tax Paid Burden on the Producer Tax Paid Welfare Loss (Deadweight Loss) With Tax $52.69 3,551 Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $16.00 and the vertical intercept is $74.00 for the demand curve. Assume there is initially no tax, and that a $6.50 tax is being proposed by policymakers. Report all answers to two decimal places. a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ c) How much of the total losses for consumers and producers are recovered as government tax revenue? $ 23081.54 d) Is there any surplus lost by either consumers or producers that is not recovered as revenue? yes