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Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and the vertical intercept is $66.00 for the demand curve, Assume there is initially no tax, and that a $12.50 tax is being proposed by policymakers. Report all answers to two decimal places a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ ) How much of the total losses for consumers and producers are recovered as government tax revenue?$ d) is there any surplus lost by either consumers or producers that is not recovered as revenue? (Click to select)

Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and the vertical intercept is $66.00 for the demand curve, Assume there is initially no tax, and that a $12.50 tax is being proposed by policymakers. Report all answers to two decimal places a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ ) How much of the total losses for consumers and producers are recovered as government tax revenue?$ d) is there any surplus lost by either consumers or producers that is not recovered as revenue? (Click to select)

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...
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($) Price Tax imposed on: Supply Demand 90 $90.00 Excise Tax (0- $20) 0,00 80 70 Demand 60 Perfectly Relabively Inelastic Elastic Relatively Elastic 50 $50.00 40 Supply Less Perfectly 30 Elastic Elastic Perfectly Elaste 20 10 CALCULATIONS 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000
Transcribed Image Text:($) Price Tax imposed on: Supply Demand 90 $90.00 Excise Tax (0- $20) 0,00 80 70 Demand 60 Perfectly Relabively Inelastic Elastic Relatively Elastic 50 $50.00 40 Supply Less Perfectly 30 Elastic Elastic Perfectly Elaste 20 10 CALCULATIONS 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 4,000
Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and the vertical intercept is $66.00 for the demand curve. Assume there is initially no tax, and that a $12.50 tax is being proposed by policymakers. Report all answvers to two decimal places a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $[ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ ) How much of the total losses for consumers and producers are recovered as government tax revenue? $ d) is there any surplus lost by either consumers or producers that is not recovered as revenue? (Click to select)
Transcribed Image Text:Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and the vertical intercept is $66.00 for the demand curve. Assume there is initially no tax, and that a $12.50 tax is being proposed by policymakers. Report all answvers to two decimal places a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $[ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ ) How much of the total losses for consumers and producers are recovered as government tax revenue? $ d) is there any surplus lost by either consumers or producers that is not recovered as revenue? (Click to select)
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