20 10 16 14 12 10 ↑ Price . 6 Figure 4 $ 12 14 16 Quantity 24. Refer to Figure 4. Suppose a $3 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed? 25. Refer to Figure 4. Suppose a $3 per-unit tax is imposed on the sellers of this good. What is the effective price that sellers will receive for the good after the tax is imposed?

20 10 16 14 12 10 ↑ Price . 6 Figure 4 $ 12 14 16 Quantity 24. Refer to Figure 4. Suppose a $3 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed? 25. Refer to Figure 4. Suppose a $3 per-unit tax is imposed on the sellers of this good. What is the effective price that sellers will receive for the good after the tax is imposed?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3CQQ

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In an effort to reduce alcohol consumption, the government is considering a tax$1 for every gallon of liquor sold (tax imposed on manufacturers). Supposethe demand curve is Q D = 500,000 - 20,000 P (where Q D is the number of gallons of drinkliquor demanded and P is the price per gallon), and the liquor supply curve isQ S = 30,000 P (where Q S is the number of gallons supplied).a. Calculate how the tax affects the price paid by consumers and the price paidaccepted by the manufacturer.b. What is the tax revenue for the government? How much incomecome from consumers, and how much from producers?c. Suppose the demand for liquor is more elastic for younger drinkers thanolder drinker. Will the liquor tax be more, less, or the sameeffective in reducing alcohol consumption among young drinkers?Explain.
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The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are? The government decides to: a) Impose a 25% Tax on X? b) Impose a 5 Rs /unit Tax on Y? c) Give a 10% subsidy on good z? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Provide theoretical justification (using diagrams) of all results obtained?
iven the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the total surplus after tax.
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