Help plz New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes in New York City is $10.60. The combined stateand city taxes are $5.95 a pack. The average income of smokers is less than that of non-smokers.Draw a graph to show the effects of the $5.95 tax on the buyer's price, the seller's price, the quantity of cigarettes bought, and the tax revenue.Does the buyer or seller pay more of the tax? Why?5The graph shows the market for cigarettes with no tax.Draw a point to show the market equilibrium quantity and price. Label it1.%Draw a line that shows how a $6 per pack tax changes the supply ofcigarettes. Label it S + tax.Draw a point at the new equilibrium quantity to show the price paid bybuyers. Label it 2.Draw a point at the new equilibrium quantity to show the price receivedby the seller. Label it 3.Draw a shape that represents the tax revenue received by thegovernment:tOThepays more of the tax because___________.OA. seller, the elasticity of demand is greater than the elasticity ofsupplyOB. buyer; the elasticity of supply is greater than the elasticity ofO6MOllySelected:none&7*8*OA(9124+22-20-18-16-14-12-10-8-6-4-2-0-O0)0Quantity (millions of packs)Delete Clearр?11SNextxSUSback New York has the highest cigarette taxes in the country. The price of arī average pack of cigarettes in New York City is $10.60. The combined stateThe graph shows the market for cigarettes with no tax.Draw a point to show the market equilibrium quantity and price. Label it1.Draw a line that shows how a $6 per pack tax changes the supply ofcigarettes. Label it S + tax.Draw a point at the new equilibrium quantity to show the price paid bybuyers. Label it 2.Draw a point at the new equilibrium quantity to show the price receivedby the seller. Label it 3.Draw a shape that represents the tax revenue received by thegovernment.Thepays more of the tax becauseOA. seller; the elasticity of demand is greater than the elasticity ofsupplyOB. buyer; the elasticity of supply is greater than the elasticity ofdemandOC. buyer; sellers can always pass on the tax to buyersOD. seller, competition among sellers forces sellers to absorb the25%t6OllyhSelected:none&7Oj*8*1Ok1(9HO2624-22-20-18-16-14-12-10-8-6-4-2-0014)NQuantity (millions of packs)>>> Draw only the objects specified in the question.O.Delete Clear ?рD| 1+ 1111S$NextGx5 USتامback

A tax shift the supply curve leftward the difference between the price buyer pays and the price that…

The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S + tax. Draw a point at the new equilibrium quantity to show the price paid by buyers. Label it 2. Draw a point at the new equilibrium quantity to show the price received by the seller. Label it 3. Draw a shape that represents the tax revenue received by the government: The pays more of the tax because OA. seller; the elasticity of demand is greater than the elasticity of supply B. buyer, the elasticity of supply is greater than the elasticity of

The graph shows the market for cigarettes with no tax. Draw a point to show the market equilibrium quantity and price. Label it 1. Draw a line that shows how a $6 per pack tax changes the supply of cigarettes. Label it S + tax. Draw a point at the new equilibrium quantity to show the price paid by buyers. Label it 2. Draw a point at the new equilibrium quantity to show the price received by the seller. Label it 3. Draw a shape that represents the tax revenue received by the government: The pays more of the tax because OA. seller; the elasticity of demand is greater than the elasticity of supply B. buyer, the elasticity of supply is greater than the elasticity of

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section6.2: Taxes

Problem 2QQ

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The following graph shows the daily market for wine. Suppose the government institutes a tax of $23.20 per bottle. This places a wedge between the price buyers pay and the price sellers receive. 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 (Bottles of wine) (Dollars per bottle) (Dollars per bottle) Before Tax After Tax Using the data you entered in 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 Elasticity (Dollars per bottle) Buyers Sellers The burden of the tax falls more heavily on the ___ elastic side of the market.
Suppose that the government imposes a per-unit tax on cell phones. The tax is imposed on producers of cell phones and the amount of the tax is $50 per cell phone. The following graph shows the effect of the tax. Use the graph to answer the following questions. a) How much of the tax per cell phone is paid by producers? How much of the tax per cell phone is paid by consumers? b) How much tax revenue (in total) does the government collect from the tax imposed on cell phones? c) What is the amount of the deadweight loss due to the presence of the tax on cell phones?
If after a tax is imposed, the price paid by the buyer rises by $3 while the price received by the seller falls by $2, and the quantity of goods sold falls from 300 to 200 units, what is the amount of government revenue from this tax?
Tax revenue when tax is $80 Tax revenue when tax is $40 Tax revenue when tax is $120 The graph shows the demand and supply of bungee jumps in Xtremeland. The government decides to impose an excise tax on bungee jumps to help pay for the high number of back and neck injuries.
Illustrate each of the following situations with a graph showing IS curve: a. An increase in taxes
Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to $1 per liter is levied on soft drink sellers, please answer the following questions: 1. Buyers would spend a total of $___________ million on soft drinks. 2. Sellers would receive a total of $____________ million (after-tax) from selling soft drinks. 3. The government revenue from this tax would be $____________ million.
2.) Beer Tax Analysis Complete all parts of practice problem #4 on page 129 of Mankiw. Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. (In fact, both the federal and state governments impose beer taxes of some sort.) a. Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers, and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers? b. Now draw a supply-and-demand diagram for the beer market with the tax. Show the price paid by consumers, the price received by producers, and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers? Has the quantity of beer sold increased or decreased?
What is the effect of government purchased and taxation on the level of income?
The following graph shows the daily market for wine. Suppose the government institutes a tax of $23.20 per bottle. This places a wedge between the price buyers pay and the price sellers receive. Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Using the data you entered in 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. The burden of the tax falls more heavily on the ___ elastic side of the market.
In his fiscal year(FY0 2015 budget proposal, President Obama envisions another hike in the federal excise tax on cigarettes. He engineered a tripling of the tax-form 39 cents to $1.01 per pack- in 2009. Now he wants to hike the tax by another 94 cents, to $1.95 per pack. It's easy to see why Obama(himself a smoker) likes the idea. The 2009 tax hike brought an extra $9 billion a year into the U.S. treasury, it also reduced smoking and smoking-related health costs. This time around the Congressional Budget office projects a 94 cent tax hike will increase federal revenue by $78 billion over ten years, helping to bring down project deficits. The CBO also projects that the higher price will reduce the number of smokers by 2.5 million and the number of smoking-related deaths by 18,000 over the same period. Smokers don't like the idea at all,of course.Nor do the states,which will see their own tax revenues decline along with the cigarette sales. and convenience stores like 7-Eleven will see a…