Bundle: Essentials Of Economics, 8th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337378833
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 6, Problem 3CQQ
To determine
The impact of tax on consumers and sellers.
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The market for kaleburgers is given below.
Price
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Supply
$9
$8
$7
$6
$5
$4
$3
$2
$1
Demand
200
400
600
800
1000
burgers/day
Suppose the government imposes a $2 per burger tax on this market.
a.) In response to the tax, the consumer price will rise to
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b.) In response to the tax, the price paid to producers will fall to
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c.) As a result of this tax, the quantity transacted will be
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2. Using the following graph, answer the following questions. Also, show/Label your answers
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Price
20
18
16
14
12
10
6.
4 6 8 10 12 14 16 Quantity
2
a. Suppose a $4 per-unit tax is imposed on the sellers of this good. What price will buyers pay
for the good after the tax is imposed?
b. Suppose a $4 per-unit tax is imposed on the sellers of this good. How much is the burden of
this tax on the buyers in this market?
If the government removes a tax on a good, then the quantity of the good sold will______.
Chapter 6 Solutions
Bundle: Essentials Of Economics, 8th + Mindtap Economics, 1 Term (6 Months) Printed Access Card
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