The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Complete the following table, given the information presented on the graph.ResultValuePer-unit tax Price producers receive before tax Equilibrium quantity after tax In the following table, indicate which of the previous graph’s areas corresponds to each concept. Check all that apply.ConceptABCDEFProducer surplus after the tax is imposed Tax revenue after the tax is imposed Consumer surplus after the tax is imposed DemandSupply28.00B20.00D E12.002QUANTITY (Pinckneys)PRICE (Dollars per pinckney)

In a market, there is producer and consumer who helps in keeping the market in equilibrium. Producer…

Answered: Demand Supply 28.00 B 20.00 D E 12.00 2…

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Demand Supply 28.00 B 20.00 D E 12.00 2 QUANTITY (Pinckneys) PRICE (Dollars per pinckney)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 9MC

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Question

The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.

Complete the following table, given the information presented on the graph.

Result	Value
Per-unit tax
Price producers receive before tax
Equilibrium quantity after tax

In the following table, indicate which of the previous graph’s areas corresponds to each concept. Check all that apply.

Concept	A	B	C	D	E	F
Producer surplus after the tax is imposed
Tax revenue after the tax is imposed
Consumer surplus after the tax is imposed

Demand
Supply
28.00
B
20.00
D E
12.00
2
QUANTITY (Pinckneys)
PRICE (Dollars per pinckney)

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