Refer to image Price (dollars)$6.00Toolstax$5.50$5.00DWL$4.50$4.00P.Buyer$3.50DWL$3.00Seller$2.50$2.00$1.50$1.00D$0.502 4 6 8 10 12 14 16 18 20Quantity (thousands of gallons)10. This generates aa. Before the tax is imposed, the equilibrium price is $surplus of $and the equilibrium quantity isNext, consider a $1.00 excise tax on producers for each pound of sugar sold. The graphillustrates the demand and supplysugar both before and after the tax is imposed. Answer the questions below based on the market for sugar with the $1.00b. The consumer surplus generated after the imposition of the tax is $c. The producer surplus generated after the imposition of the tax is $d. The total revenue generated from the tax is $|e. The economic surplus generated after the tax is $f. The deadweight loss generated by the imposition of the tax is $Shade in this area on the graph.

Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Answered: Price (dollars) $6.00 S. tax Tools…

Price (dollars) $6.00 S. tax Tools $5.50 $5.00 DWL $4.50 $4.00 P. Buyer $3.50 DWL $3.00 Seller $2.50 $2.00 $1.50 $1.00 D $0.50 2 4 6 8 10 12 14 16 18 20 Quantity (thousands of gallons)

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...

See similar textbooks

Related questions

Q: STORES & SALES 16 14 12 10 8. 4 2 100 200 300 400 500 600 SALES STORES

A: Graph 1 measures sales on the horizontal axis and measures Stores on the vertical axis. Graph 2…

Q: 12

A: The income expenditure model shows the relationship between income and expenditure in an economy. It…

Q: A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000,…

A: Based on a nation's total income levels, the definition of poverty might vary; often, it is…

Q: Hours Producing Produced Choice (Boats) (Kites) (Boats) (Kites) A 8 4 B 6 2 3 9. 4 2 13 D 2 6. 1 16…

A: Production Possibility Curve (PPP) Shows all the possible combination of goods that an economy can…

Q: 1a and b

A: Answer: If coffee consumption causes stroke then the demand for coffee will decrease. As a result,…

Q: 44; $43; 21.50; -32.00

A: Answer =- 32

Q: Just 2.9 Only D,E,F and G

A: NOTE : Since you have asked a question with multiple sub-parts, we will answer the first three…

Q: 6. Pick which one you would personally prefer (this is all tax free): a. $1 million today b.…

A: This question can be answered with the understanding of the time value of money which states that…

Q: 8.00 5.14 3.00 0 D 57 MC ATC AVC MR 10 15 Quantity (cans per day)

A: Total cost includes all the costs that a firm incurs to produce goods and services. It includes…

Q: c) External costs in T-shirt production According to the World Wildlife Fund (WWF), it takes 2700…

A: An externality is a cost or benefit that comes from one agent but falls on another agent in the…

Q: ʜᴏᴡ ʟᴏɴɢ ᴍᴜꜱᴛ ᴀ ᴘʜᴘ 40,000 ɴᴏᴛᴇ ʙᴇᴀʀɪɴɢ 4% ꜱɪᴍᴘʟᴇ ɪɴᴛᴇʀᴇꜱᴛ ʀᴜɴ ᴛᴏ ᴀᴍᴏᴜɴᴛ ᴛᴏ ᴘʜᴘ 41,350.00? ᴘʟᴇᴀꜱᴇ…

A: Given information, Principal amount: Pho 40,000 Future value: Php 41,350 Interest rate: 4%…

Q: . discuss how agricultural insurance could help farmers improve farm activity.

A: The economics as a study is based upon the idea that the countries tend to have a limit to the…

Q: 25 true or false Under D/P after sight, when the importer makes payment the collecting bank will…

A: DP- It is the term used at sight for the payment. It was made before the release of documents from…

Q: 16 14 12 10. ATC AVC MR 10 20 30 40 50 60 70 80 90 100 11o 120 Quantity Price Total Revenue

A: We will answer the first three subparts only. Please resubmit the question with any other parts…

Q: What are some of the environmental factors that may influence buying decisions? Identify…

A: Professional buyers, who are extremely busy, set aside specific hours or days to meet salespeople…

Q: Firm i High Price Low Price Firm 2 High Price Firm 2 Low High Price Low Price Price 45,25 25,is…

A: "Since you have asked multiple questions, we will answer only first question for you. If you have…

Q: Parents investment. Job starting pay back Pay IM $=1000,000 40,000 Jeribd = ?

A: The period that depicts the length of time that is being taken for recovering the investment cost is…

Q: describe fertilizer/ what it is used for, etc

A: Answer: Fertilizer: a fertilizer is any natural or synthetic substance that is applied to soil or…

Q: Quantity demanded, Qd Quantity supplied, Qs Price, p $50 $200 $0 $60 $ 190 $30 $70 $180 $60 $80 $170…

A: Consumer surplus is the area under the demand curve but above the actual price. Consumer Surplus is…

Q: $100 9아 8아 7아 60 50 40 30 20 10 B 1 2 3 4 5 6 7 89 10 Quantity of Output Unit (dollars)

A: A variable cost is a commercial expense that varies depending on the amount of product or service…

Q: Types of Size of Sellers Size of Examples Markets Buyers 1 2 4 %23

A: There are several types of markets: Perfectly Competitive Market - It is a market structure having a…

Q: Cattle (100% cover) Feed (Ibs) 15 13 10 8 5 3 Hay (10 lbs) cost 0 $3.00 1 $2.89 2 $2.58 4 $2.77 6…

A: Maximum feed is 15 lbs.

Q: $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 Pw D 10 20 30 40 50 60 70 80 90 Domestic consumer may purchase…

A: Before the imposition of tariff (or at the world price Pw) Consumer surplus is the area of the blue…

Q: Competitor enters market Competitor does not enter market 0.5 0.5 Sell business 41 4 Do nothing -8…

A: Given pay off matrix

Q: NEW Quantity Supplied ('000 Gallons) Price Quantity DEMAND Demanded ($ per gallon) ($ per gallon)…

A: If the demand decreases by 4000 gallon at all price then; Price ($) Quantity demanded Quantity…

Q: Effect of Sales Tax Price (S per pack) 1.50 1.40 1.30 1.25 1.15 D: Quantity (Millions of pack)

A: In a market, the tax revenue of the government depends upon the elastic of demand and supply as the…

Q: Circle the letter associated with the correct answer and write the correct letter on the line (and…

A: Here, total sales of gasoline at different price level is given for Slurpico Station in West Valley…

Q: 2. HIPAA compliance can be violated by doing all the following, except: O Database breaches O…

A: HIPAA compliance:- HIPAA is the law that governs the security of individual health information. To…

Q: Price %24 1. 1. Calculate elas or unitary elas $4 8 1 2 3 Number of ha

A: Point elasticity of demand: Ed = (ΔQ / ΔP) * (P/Q) Where ΔQ is change in quantity ΔP is change in…

Q: The National Highway Traffic Safety Administration (NHTSA) collects traffic safety-related data for…

A: Probability: Probability concerns numerical descriptions of the likelihood or likelihood of an event…

Q: A 1 business established nearby, discuss how it positively impacts the following:…

A: As we answer only 3 subparts and the question has more than 3 subparts, we would be answering the…

Q: diagram below shows the market for some agricultural product, X. .00 5.00 1.00 3.00 2.00 1.00 300…

A: In a market, at a specific market price, producer surplus can be calculated as: =(1/2)×(market…

Q: 70 600 600 400 1 ID i = 5% co. monthly Y ;Y = Blank 2 ur answer

A: *Answer:

Q: Price and Cost (dolars) Price and Cost (dolars) MC MC ATC 11 11 10 10 AVC ATC 7. AVC 100 150 200…

A: In perfect competition market there are large numbers of sellers and buyers firm homogeneous product…

Q: ovide the an Price/unit (Pesos) 20 40 60 80 requirements 100 below. Quantity 30 (a) 60 (b) 90 (c)…

A: The price elasticity of demand is the %(percentage) change in the quantity demanded of goods…

Q: 1.Tax rates, deductions entitlement and tax treatments depend on whether the taxpayer is a resident…

A: Individuals' status as residents or non-residents determines whether they can claim personal…

Q: 0.55 * 0.50 0.45 0.40 Number of pencils Price ($)

A: Equilibrium(e*) is where the dd(demand) and ss(supply) cut each other. Here, the market clears-…

Q: Price 408 384 360 336 312 288 264 240 216 192 168 144 120 96 72 48 24 0 0 56 112 168 224 280 336 392…

A: Answer: A firm maximizes its profit where marginal revenue (MR) and marginal cost (MC) intersect…

Q: ar-17 n-17 p-17 ec-17 ar-18 in-18 p-18 ec-18 ar-19 n-19 p-19 ec-19 ar-20 5.9 5.6 5.4 5.6 5.5 5.3 5.0…

A: Introduction According to the Phillips curve, the unemployment rate and inflation are inversely…

Q: The General Hospital is evaluating new office equipment offered by four companies. The useful life…

A: Total benefit from company A equipment is =(Annual benefit*4) + Salvage value - First…

Q: $90 S (MC) 70 Price Per Pair B 50 E 30 10 D (MB) 500 1,000 Pairs of Shoes 200

A: Equilibrium is occurring at price 50 with a corresponding quantity of 500 shoes.

Q: C. -250 low (0.6) еxpand 2 - 230 small high (0.45 don't expand 183 modest (0.4) 1 40 advertise…

A: Introduction Here we have two type of firms: small and large Production of small firm Production of…

Q: Questions 1. Howard needs to buy a laptop computer to start online university courses. The price at…

A: a. In economics, the opportunity cost refers to the value of the next alternative that has to give…

Q: An accountant wants to find the average amount of taxes owed under the new tax laws. She plans to…

A: If the researcher just observed and measured the study characteristics without doing any…

Q: 18. Annual sales: $165,000 Average inventory: $14,700 Inventory turnover (nearest tenth):?

A: Inventories are items held by businesses for the purpose of sale or usage. Inventories can be goods,…

Q: ch 1 briefly.

A: Answer 1. The current inquiry: Building on this analysis, and therefore the proven fact that very…

Q: A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta…

A: A. Crossover points Let x be the crossover between Bogor and Jakarta;…

Q: antity demanded of tacos decreases er hour at each price, the new price of a taco) 0 1.00 2.00 3.00…

A: Given, Price quantity demanded quantity supplied 1 240 0 2 210 30 3 180 60 4 150 90 5…

Question

Refer to image

Price (dollars)
$6.00
Tools
tax
$5.50
$5.00
DWL
$4.50
$4.00
P.
Buyer
$3.50
DWL
$3.00
Seller
$2.50
$2.00
$1.50
$1.00
D
$0.50
2 4 6 8 10 12 14 16 18 20
Quantity (thousands of gallons)
10. This generates a
a. Before the tax is imposed, the equilibrium price is $
surplus of $
and the equilibrium quantity is
Next, consider a $1.00 excise tax on producers for each pound of sugar sold. The graphillustrates the demand and supply
sugar both before and after the tax is imposed. Answer the questions below based on the market for sugar with the $1.00
b. The consumer surplus generated after the imposition of the tax is $
c. The producer surplus generated after the imposition of the tax is $
d. The total revenue generated from the tax is $|
e. The economic surplus generated after the tax is $
f. The deadweight loss generated by the imposition of the tax is $
Shade in this area on the graph.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or Â£0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or Â£0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about Â£0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16
1. The government of Antigua wishes to introduce income tax to increase government revenue. In so doing, a consultant was hired to make recommendations on the best way forward. The consultant proposed that the government shouldn’t tax any employee earning below XCD25,000.00 annually or the employee first XCD25,000.00 annually. Thereafter, any employee earning between XCD25,000.00 and XCD40,000.00 annually should pay 5.5% income tax and then any employee earning above XCD40,000.00 should pay 10.5% income tax. For the above information answer the following: a. Derive a mathematical function to represent the consultant’s position clearly identifying all variables and intervals. b. From part a) above, state the name of ALL the mathematical functions derived. c. If Jane (someone working in Antigua) pays XCD750.00 in income tax, calculate Jane’s annual income.
Opponents of increasing the tax on gasolineargue that the big oil companies just pass thetax along to the consumers. Do you agree ordisagree? Explain your answer.
5. Calculating tax incidence Suppose that the local government of Raleigh decides to insitute a tax on cider consumers. Before the tax, 30,000 cases of cider were sold every week at a price of $11 per case. After the tax, 24,000 cases of cider are sold every week; consumers pay $13 per case (including the tax), and producers recieve $9 per case. Please Help!!!!
Marc Batchelor, a self-employed sales consultant, has estimated annual earnings of $307,000 this year. His social security tax rate is 12.4% up to the wage base, Medicare is 2.9%, and his federal income tax rate is 24%. How much estimated tax (in $) must Marc send to the IRS each quarter? $ ______
An increase in the excise taxes will shift thesupply on right side.Select one:e a. TrueOb. False
what is market f suppose that if your income is 10000 your tax is 1000 but if your income is 50000 your tax is 4000 such a tax is ANSWR IN DETAIL
Sean is getting ready to do his taxes. He is single and lives in New York City. Sean earned $50,000 in 2011. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2011. On Annual Taxable Income... The Tax Rate Is... (Percent) Up to $8,500 10 From $8,500 to $34,500 15 From $34,500 to $83,600 25 From $83,600 to $174,400 28 From $174,400 to $379,150 33 Over $379,150 35 Based on the IRS table, Sean calculates that his marginal tax rate is ______ (10%, 15%, 25%, 28%, 33%, 35% ) when his annual income is $50,000. Sean calculates that he owes ________ ($4,725, $4,750, $7,775, $8,625, $12,500) in income taxes for 2011. Sean then calculates that his average tax rate is __________ ( 12%, 15%, 17%, 20%, 25%) , based on the annual income level and the amount of taxes he owes for 2011. After figuring out what he owes in taxes in 2011, Sean decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to…
PDemand QDemand PSupply QSupply $10 0 $1 2 $9 3 $2 4 $8 6 $3 6 $7 9 $4 8 $6 12 $5 10 $5 15 $6 12 $4 18 $7 14 If the Government creates a quota of 6 units to reduce the consumption of the dangerous product, what will the price of the good be in the marketplace? How much deadweight loss is there? How much of the deadweight loss came from the consumers?
Qd= 100 – 0.25P Qs= -20 + P Find equilibrium quantity and price
Given: QD = 160 -5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on the buyer. Calculate the following: (e) Deadweight loss. (f) Government revenue.
Question: Consider a market with Qd=240 – 6p and Qs=2p. a. What’s consumer surplus? b. What’s producer surplus? c. Now suppose that £4 tax per unit needs to be paid by consumers in the market. What is the tax revenue? * when checking for answers online, I found this (listed below), but I don't understand where they got the 40 from when working out consumer surplus. I think it is the new price but I don't see anything in the question regarding a price change- there is only one price we can work out from equation Qd and Qs, but was wondering if there was a way to get that 40 from the question given- any help would be much appreciated Answers: 1. Qd = Qs gives that 240 – 6p = 2p. Simplifying the equation yields 8p = 240, which gives p*= 30. Plugging P*=30 into either demand or supply gives Q*= 60. CS = 1⁄2 * (40 - 30) * 60 = 300.