Solve subparts a, c and d. The data in the following table is for the latest Book by Mark Blackfoot.a) Fill in the Quantity Supplied (after tax) column assuming that a $2 per unit excise tax is imposed on the supplier.Price toConsumersQuantityDemandedQuantitySupplied(before tax)QuantitySupplied (aftertax)8180609165751015090111351051212012013105135b) What is the equilibrium price and quantity before the tax?Equilibrium Price = $0Equilibrium Quantity = 0c) What is the equilibrium price and quantity after the $2 tax is imposed?Equilibrium Price (after tax) = $0Equilibrium Quantity (after tax) = 0d) What portion of the $2 tax is paid by the seller and what portion is paid by the consumer?Seller = S0Consumer = $0

The quantity demanded is the amount of a good or service that consumers are ready and able to…

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Equilibrium Price = $0 Equilibrium Quantity

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...

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Question

Solve subparts a, c and d.

The data in the following table is for the latest Book by Mark Blackfoot.
a) Fill in the Quantity Supplied (after tax) column assuming that a $2 per unit excise tax is imposed on the supplier.
Price to
Consumers
Quantity
Demanded
Quantity
Supplied
(before tax)
Quantity
Supplied (after
tax)
8
180
60
9
165
75
10
150
90
11
135
105
12
120
120
13
105
135
b) What is the equilibrium price and quantity before the tax?
Equilibrium Price = $0
Equilibrium Quantity = 0
c) What is the equilibrium price and quantity after the $2 tax is imposed?
Equilibrium Price (after tax) = $0
Equilibrium Quantity (after tax) = 0
d) What portion of the $2 tax is paid by the seller and what portion is paid by the consumer?
Seller = S0
Consumer = $0

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