Table 1: Market for Skis P 0 20 40 60 80 100 Qd 25 20 15 10 5 0 Qs 0 4 8 12 16 20 1. Consider Table 1. a. What is the equilibrium price and quantity? b. What is the CS, PS, and TS? c. If there is a $20 tax, what is the equilibrium price buyers pay, the price sellers receive, and the quantity? d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include graph! e. Does welfare go up or down? Explain.

Table 1: Market for Skis P 0 20 40 60 80 100 Qd 25 20 15 10 5 0 Qs 0 4 8 12 16 20 1. Consider Table 1. a. What is the equilibrium price and quantity? b. What is the CS, PS, and TS? c. If there is a $20 tax, what is the equilibrium price buyers pay, the price sellers receive, and the quantity? d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include graph! e. Does welfare go up or down? Explain.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 5CQQ

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Question

Table 1: Market for Skis
P
0
20
40
60
80
100
Qd
25
20
15
10
5
0
Qs
0
e.
4
8
12
16
20
1. Consider Table 1.
a.
What is the equilibrium price and quantity?
b. What is the CS, PS, and TS?
C.
If there is a $20 tax, what is the equilibrium price buyers pay, the price sellers receive,
and the quantity?
d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include
graph!
Does welfare go up or down? Explain.

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