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lowing graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. se the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in K on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on = field. You should see a tax wedge between the price buyers pay and the price sellers receive.) e graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 50 Market for Jeans 45 I Quantity (Pairs of jeans) 50 40 Supply Demand Price (Dollars per pair) Supply Price (Dollars per pair) 75.00 17.00 35 30 25 Supply Shifter 20 Tax on Sellers (Dollars per pair) 0.00 Demand 15 10 5 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of jeans)

lowing graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. se the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in K on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on = field. You should see a tax wedge between the price buyers pay and the price sellers receive.) e graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 50 Market for Jeans 45 I Quantity (Pairs of jeans) 50 40 Supply Demand Price (Dollars per pair) Supply Price (Dollars per pair) 75.00 17.00 35 30 25 Supply Shifter 20 Tax on Sellers (Dollars per pair) 0.00 Demand 15 10 5 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of jeans)

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: The price of coffee rose sharply last month, while the quantity sold remained the same. Five people...
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Q Sea Aplia Homework: Elasticity of Demand and Supply The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 50 Market for Jeans 45 I Quantity (Pairs of jeans) 50 40 Supply Demand Price (Dollars per pair) Supply Price (Dollars per pair) 75.00 17.00 35 30 25 Supply Shifter Tax on Sellers (Dollars per pair) 0.00 Demand 15 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of jeans) PRICE (Dollars per pair) 20
Transcribed Image Text:Q Sea Aplia Homework: Elasticity of Demand and Supply The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 50 Market for Jeans 45 I Quantity (Pairs of jeans) 50 40 Supply Demand Price (Dollars per pair) Supply Price (Dollars per pair) 75.00 17.00 35 30 25 Supply Shifter Tax on Sellers (Dollars per pair) 0.00 Demand 15 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of jeans) PRICE (Dollars per pair) 20
Q Sea Aplia Homework: Elasticity of Demand and Supply Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive (Pairs of jeans) (Dollars per pair) (Dollars per pair) Before Tax After Tax Using the data you entered in the previous table, calculate the tax burden that falls on buyers and sellers, respectively, and calculate the price elasticity of demand and supply thraughout the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity Buyers Sellers The burden of the tax falls more heavily on the elastic side of the market.
Transcribed Image Text:Q Sea Aplia Homework: Elasticity of Demand and Supply Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity Price Buyers Pay Price Sellers Receive (Pairs of jeans) (Dollars per pair) (Dollars per pair) Before Tax After Tax Using the data you entered in the previous table, calculate the tax burden that falls on buyers and sellers, respectively, and calculate the price elasticity of demand and supply thraughout the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity Buyers Sellers The burden of the tax falls more heavily on the elastic side of the market.
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