EBK FOUNDATIONS OF ECONOMICS
EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 8, Problem 1IAPA
To determine

To explain:

The reasons for whether the taxes are paid more by buyer orseller, andto show the same on graph.

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The graph shows the market for pillows in which the government has imposed a sales tax of $6 per pillow on sellers. Draw a point to show the price of a pillow and the quantity of pillows bought and sold with no tax. Label it 1. Draw a point to show the price paid by buyers and the quantity of pillows bought following the tax. Label it 2. Draw a point to show the price received by sellers and the quantity of pillows sold following the tax. Label it 3. The tax is O A. split between sellers and buyers, with buyers paying more than sellers O B. paid by buyers and not sellers because tax is always added to the sale price at the check-out OC. paid by sellers and not buyers because the government imposed the tax on sellers O D. split evenly between sellers and buyers 16 14- 12- 10- 84 6- 4- 2- Price (dollars per pillow) S + tax on sellers S D 12 + 6 10 Quantity (millions of pillows per year) >>> Draw only the objects specified in the question.
from the image calculate for the market with cigarettes after tax  the tax  the price paid by consumers  price received by producers quantity of cigarettes sold
If the government increases alcohol taxation how will it affect consumption?
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