QUESTION 8 Figure 14 12 10 8 6 4- 2- 10 20 30 40 50 60 70 Refer to Figure. If the government imposed a tax of $6 per unit in this market then which of the following statements would be correct? O a. The burden of tax will fall equally on the buyers and sellers. O b. The burden of tax will fall more on the buyers. O C. The burden of tax will fall more on the sellers. O d. Neither buyer or seller will have to pay the tax.

QUESTION 8 Figure 14 12 10 8 6 4- 2- 10 20 30 40 50 60 70 Refer to Figure. If the government imposed a tax of $6 per unit in this market then which of the following statements would be correct? O a. The burden of tax will fall equally on the buyers and sellers. O b. The burden of tax will fall more on the buyers. O C. The burden of tax will fall more on the sellers. O d. Neither buyer or seller will have to pay the tax.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 5QR

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Suppose a tax of $0.25 is placed on the market depicted below. 090 085 0.80 0.75 0.70 085 060 0.55 050 0.45 0.40 50 100 150 200 250 300 350 400 What is the DWL from the tax? O a. 8.75 O b.15 O C. 10 O d. 12.50
QUESTION 8 Figure 14- 12 10 6 2 10 20 30 40 50 60 70 Refer to Figure. If the government imposed a tax of $6 per unit in this market then which of the following statements would be correct? O a. The burden of tax will fall equally on the buyers and sellers. O b. The burden of tax will fall more on the buyers. O C. The burden of tax will fall more on the sellers. O d. Neither buyer or seller will have to pay the tax. QUESTION 19 Figure 20 Trice 18 16 14 12 10 8 D 2 10 20 30 40 50 60 70 80 quantity Refer to Figure. If the government imposes a price ceiling of $6 on this market, then there will be O a. a shortage of 40 units. O b.no shortage. O C. a shortage of 30 units. o d. a shortage of 20 units.
Figure 6-12 Supply Demand 14 10 25 50 QUANTITY Refer to Figure 6-12. Suppose a tax of $5 per unit is imposed on this market. Which of the following is correct? O a. Sellers will bear more of the burden of the tax than buyers will. O b. Buyers will bear more of the burden of the tax than sellers will. O c Buyers and sellers will share the burden of the tax equally. O d. There is no tax burden.
nt ard es ar 14 O 10 5 price 25 50 D Suppose a tax of $9 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed? $5 Between $5 and $10 Between $10 and $14 $14 quantity
10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 300 600 900 1200 1500 1800 2100 Supply Demand 2400 Suppose that a tax of $3 was inserted into the market above, what would be the new price that consumers pay? O a.7 O b.6 O c. 8 O d.5
QUESTION 3 Figure 1price 10 Is 6. D ater ta 10 20 30 40 50 60 70 80 quantity Refer to Figure. Suppose the government removes the taxes imposed on buyers and impose the same amount of taxes on the sellers of that good. How does this change will impact the tax burden on buyers and sellers? O a. Buyers will now have a larger burden of tax than the sellers. O b. Sellers will now have a larger burden of tax than the buyers. O C. The tax burden on buyers and sellers will be the same as it was before the change. O d. Buyers and sellers will share the same burden of taxes. QUESTION 4 Assume that in a market, the equilibrium price is $5 per unit. Further, the government imposes a price floor at $7 per unit. This will cause O a. a binding price floor and will cause a surplus in the market. O b.a binding price floor and will cause a shortage in the market. O C. a non-binding price floor and will cause a surplus in the market. O d.a non-binding price floor and will cause a shortage in the market.
The figure shows the market for tires. The figure shows that the government has imposed a tax of per tire. Price (dollars per tire) O A. $40 S+ tax 70 В. $60 60 O C. $30 50 +..... O D. $10 hat ma O E. None of the above answers is correct. 40 As 30 20 Ass 10 10 20 30 40 50 60 70 Quantity (millions of tires per month) its AR O Time Remaining: 00:59:31 Next ompleted This course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e MacBook Pro terwebsite name
Suppose the government removes a tax on buyers of a good and levies a tax ofthe same size on sellers of the good. How does this change in tax policy affectthe price that buyers pay sellers for this good, the amount buyers are out ofpocket including the tax, the amount sellers receive net of tax, and the quantityof the good sold?
The figure below illustrates the effect of an excise tax (per unit tax) imposed on sellers (S means supply and D means demand). What is the value of the tax and how much tax revenue does it generate? Price S+tax $100 $60 $50 50 60 Quantity O a. $100 and $1000. O b. $50 and $3000. Oc. None of the alternatives is correct. O d. $50 and $2500. O e. $100 and $5000.