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The U. S. government wants to help the American auto Industry compete against foreign automakers that sell trucks in the United States. It can do
The U. S. government wants to help the American auto Industry compete against foreign automakers that sell trucks in the United States. It can do this by Imposing an excise tax on each foreign truck imported and sold in the United States. The hypothetical pre - tax and post - tax demand and supply schedules for Imported trucks are given in the graph. (2 points each) a, In the absence of government intervention: .= What is the equilibrium price of an imported truck? S. What is the equilibrium quantity of imported trucks? units b. Suppose government imposes an excise tax of $ 15, 000 per imported truck on suppliers of imported trucks. . . How many imported trucks will be demanded after imposition of the tax? units . . At what price? S c. How much does the foreign automaker *keep* after paying the excise tax to the government? $ d. Calculate the government revenue raised by the excise tax S c. Use either the graph and/or values you have correctly obtained to answer the following two questions: .. What share of the tax do buyers end up paying for each truck $. - . What share of the tax do sellers end up keeping for each truck $.The U. S. goesmment wants to help the American cute industry compete against foreign automakers that sell trucks in the United States. R can do this by imposing an gacise tas on each foreign truck Imported and wild in the United States The hypothetical pre - tas and post - tas demand and supply whedules for imported trucks are giver in the graph. 12 points each a. In the absence of government intervention.. what is the equilibrium price of an imported buck? s units government Imposes on eadse was of $15, 003 perimponed truck on wippliers of moo ted trucks -- Howmany imperlee bucks will be donanded after imposition of the war? units .. Al what price? $ does the foreign automaker *keep' after paying the excise tax to the goverment? s d Calculate the government revenue nahed by the excise tax $ either the graph andforvalues you have comect y obtained to answer the following two questions- - what share of the tax do buyers end up paying for each truck $. . . - What share of the tax do selers end up keeping for each Truck 5 Price of imported trucks S Tax $40k $35k S $30k $25k $20k $15k $10k D 30 600 1 000 1,500 2.000 2600 3008 3.600 4.008 Imported trucks
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