The government is interested in imposing a tax on the market for raw aluminum The current price in the market for aluminum is $2000 ton and the quantity exchanged is 160,000 tons The elasticity of demand is 6, the short run elasticity of supply is 1 4, and the long run elasticity of supply is The amount of the tax is $200 ton Using an appropriate diagram, show this market before the tax is imposed, labeling everything Show the short run effect of the tax in this market on your diagram, labeling the new relevant points Be sure to indicate the per unit tax in your diagram Show the long run effect of the tax in this market on your diagram, labeling everything Calculate (showing all work) the amount of revenue producers earn in the long run after the tax is imposed Calculate (showing all work) the amount of expenditures consumers make in this market in the long run after the tax is imposed Calculate (showing all work) the amount of revenue the government earns in this market in the long run after the tax is imposed Calculate (showing all work) the Burden to Consumers and the Burden to Producers in the long run from this tax

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Posted on Jun 21, 2024

The government is interested in imposing a tax on the market for raw aluminum. The current price in the market for aluminum is $2000/ton and

The government is interested in imposing a tax on the market for raw aluminum. The current price in the market for aluminum is $2000/ton and the quantity exchanged is 160,000 tons. The elasticity of demand is .6, the short-run elasticity of supply is 1.4, and the long-run elasticity of supply is . The amount of the tax is $200/ton.

Using an appropriate diagram, show this market before the tax is imposed, labeling everything.
Show the short-run effect of the tax in this market on your diagram, labeling the new relevant points. Be sure to indicate the per-unit tax in your diagram.
Show the long-run effect of the tax in this market on your diagram, labeling everything.
Calculate (showing all work) the amount of revenue producers earn in the long-run after the tax is imposed. Calculate (showing all work) the amount of expenditures consumers make in this market in the long-run after the tax is imposed. Calculate (showing all work) the amount of revenue the government earns in this market in the long run after the tax is imposed. Calculate (showing all work) the Burden to Consumers and the Burden to Producers in the long-run from this tax.