Q28NOT GRADED THIS IS A PRACTICE REVIEW The data describes the market for luxury boats.The supply of luxury boats is perfectly elastic, the demand for luxury boats is unitelastic, and with no tax on luxury boats the price is $4 million and 400 luxuryboats a week are bought.Now the government puts 10 percent tax on luxury boats.With the tax imposed, the price of a luxury boat isA. $0.40 millionB. $4.20 millionC. $4 millionD. $400 millionE.$4.40 millionWith the 10 percent tax on luxury boats,O A. the tax reduces the quantity of luxury boats sold to zero, so there is notax.B. the buyer pays all of the tax.C. the seller pays all of the tax.D. the buyer and the seller split the tax evenly.E. it is impossible to say how the tax is split between the buyer and seller.The government raises tax revenue of $million.>>> Answer to 1 decimal place.

Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

The data describes the market for luxury boats. Now the government puts 10 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is, O A. $0.40 million B. $4.20 million O C. $4 million D. $400 million E. $4.40 million With the 10 percent tax on luxury boats, O A. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. B. the buyer pays all of the tax. O C. the seller pays all of the tax. O D. the buyer and the seller split the tax evenly. O E. it is impossible to say how the tax is split between the buyer and seller. The government raises tax revenue of $ >>> Answer to 1 decimal place. million. .....