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K The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is OA. $0.40 million OB. $2.40 million OC. $220 million OD. $2 million OE. $2.20 million With the 20 percent tax on luxury boats, ⒸA. the buyer pays all of the tax. OB. the seller pays all of the tax. OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split between the buyer and seller. O E. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. Selected: none 4 The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $2 million and 220 luxury boats a week are bought. 3.20 2.80- 2.40- 2.00- 1.60+ 88 Price (millions of dollars per boat) 176 220 Quantity (boats per week) 132 D Delete Clear ? S+tax 264 >>> Draw only the ohierts snerified in the question Q X

K The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is OA. $0.40 million OB. $2.40 million OC. $220 million OD. $2 million OE. $2.20 million With the 20 percent tax on luxury boats, ⒸA. the buyer pays all of the tax. OB. the seller pays all of the tax. OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split between the buyer and seller. O E. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. Selected: none 4 The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $2 million and 220 luxury boats a week are bought. 3.20 2.80- 2.40- 2.00- 1.60+ 88 Price (millions of dollars per boat) 176 220 Quantity (boats per week) 132 D Delete Clear ? S+tax 264 >>> Draw only the ohierts snerified in the question Q X

Essentials of Economics (MindTap Course List)
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 7PA
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the seller split the tax evenly. OD. it is impossible to say how the tax is split between the buyer and seller. OE. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. The government raises tax revenue of $ >>> Answer to 1 decimal place. million. The graph shows the market for luxury boats before and after the 20 percent tax is put on luxury boats. Draw a shape that represents the excess burden of the tax. The tax is because at the quantity produced OA. inefficient; marginal cost exceeds marginal benefit B. efficient; marginal benefit exceeds marginal cost OC. efficient; marginal cost exceeds marginal benefit D. inefficient; marginal benefit exceeds marginal cost OE. efficient; the seller receives the price the buyer pays Selected: none lc pi 2.4 2.00- 1.60+ 88 >> Delete C
Transcribed Image Text:the seller split the tax evenly. OD. it is impossible to say how the tax is split between the buyer and seller. OE. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. The government raises tax revenue of $ >>> Answer to 1 decimal place. million. The graph shows the market for luxury boats before and after the 20 percent tax is put on luxury boats. Draw a shape that represents the excess burden of the tax. The tax is because at the quantity produced OA. inefficient; marginal cost exceeds marginal benefit B. efficient; marginal benefit exceeds marginal cost OC. efficient; marginal cost exceeds marginal benefit D. inefficient; marginal benefit exceeds marginal cost OE. efficient; the seller receives the price the buyer pays Selected: none lc pi 2.4 2.00- 1.60+ 88 >> Delete C
K The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is OA. $0.40 million OB. $2.40 million OC. $220 million OD. $2 million OE. $2.20 million With the 20 percent tax on luxury boats, ⒸA. the buyer pays all of the tax. OB. the seller pays all of the tax. OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split between the buyer and seller. O E. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. Selected: none The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $2 million and 220 luxury boats a week are bought. 3.20 2.80- 2.40- 2.00- 1.60 88 Price (millions of dollars per boat) 176 220 Quantity (boats per week) 132 D Delete Clear ? $+tax 264 >>> Draw only the ohierts snerified in the question Next Q X see see see see pasi see s 5 US
Transcribed Image Text:K The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is OA. $0.40 million OB. $2.40 million OC. $220 million OD. $2 million OE. $2.20 million With the 20 percent tax on luxury boats, ⒸA. the buyer pays all of the tax. OB. the seller pays all of the tax. OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split between the buyer and seller. O E. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. Selected: none The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $2 million and 220 luxury boats a week are bought. 3.20 2.80- 2.40- 2.00- 1.60 88 Price (millions of dollars per boat) 176 220 Quantity (boats per week) 132 D Delete Clear ? $+tax 264 >>> Draw only the ohierts snerified in the question Next Q X see see see see pasi see s 5 US
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