" QUANTITY P Complete the flowing table by ing in the quantity, the price buyer pay, and the price receive before and after the tex Quantity (Pair of sweatpants) (Dollar per pair) (p) using your newere from the previoutable, cute the burden that fall on buyer and on sale, respectively, and calate the price altcity Tax Burden

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Chapter6: Supply, Demand, And Government Policies
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The following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government leviesa tax of $23.20 per par
The tax places a wedge between the price buyers pay and the price sellers receive
PROS (Da pr
20
Supply
Tax Wedge
QUANTITY(Prof
Demand
(2)
Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
(Pairs of sweatpants)
Price Buyers Pay Price Sellers Receive
(Dollars per pair)
(Dollars per pair)
Before Tax
After Tax
Ling your answers from the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity
of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table
Tax Burden
(Dollars per pair) Elasticity
Buyers
The tax burden falls more heavily on the side of the market that
clastic
Transcribed Image Text:The following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government leviesa tax of $23.20 per par The tax places a wedge between the price buyers pay and the price sellers receive PROS (Da pr 20 Supply Tax Wedge QUANTITY(Prof Demand (2) Complete the following table by filling in the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Quantity (Pairs of sweatpants) Price Buyers Pay Price Sellers Receive (Dollars per pair) (Dollars per pair) Before Tax After Tax Ling your answers from the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table Tax Burden (Dollars per pair) Elasticity Buyers The tax burden falls more heavily on the side of the market that clastic
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