Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept is $70 for the demand curve. Represent a $15 tax that is paid by sellers. a) How many units do sellers sell after the tax? b) How much less do sellers keep from the sale of each unit as a result of the $15 tax? c) If the tax were on Instead on the demand side, how many units would consumers buy? d) According to this tool, sellers are O better off worse off equally well off when the tax is imposed on buyers instead of on sellers.
Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the vertical intercept is $70 for the demand curve. Represent a $15 tax that is paid by sellers. a) How many units do sellers sell after the tax? b) How much less do sellers keep from the sale of each unit as a result of the $15 tax? c) If the tax were on Instead on the demand side, how many units would consumers buy? d) According to this tool, sellers are O better off worse off equally well off when the tax is imposed on buyers instead of on sellers.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 20SQ
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