Help UC. the buyer and the seller split the tax evenly.O D. it is impossible to say how the tax is split between the buyerand seller.O E. the tax reduces the quantity of luxury boats sold to zero, sothere is no tax.The government raises tax revenue of $0 million.>>> Answer to 1 decimal place.The graph shows the market for luxury boats before and after the 20percent tax is put on luxury boats.Draw a shape that represents the excess burden of the tax.The tax isbecause at the quantity producedO A. inefficient; marginal cost exceeds marginal benefit.OB. efficient; marginal benefit exceeds marginal costOC. efficient; marginal cost exceeds marginal benefitOD. inefficient; marginal benefit exceeds marginal costOE. efficient; the seller receives the price the buyer pays2%5tg6OllyhSelected:none7O*18471UO►k(9CDThe supply of luxury boats is perfectly elastic, the demand forluxury boats is unit elastic, and with no tax on luxury boats theprice is $2 million and 220 luxury boats a week are bought.3.20O2.80-2.40-2.00-1.60-88Price (millions of dollars per boat)Delete Clear ?✓132220176Quantity (boats per week))0>> Draw only the nhierte enerified in the muestionрD+ 1130$+tax264NextDQQGSUS(bac 5The data describes the market for luxury boats.Now the government puts 20 percent tax on luxury boats.With the tax imposed, the price of a luxury boat isOA. $0.40 millionOB. $2.40 millionOC. $220 millionOD. $2 millionOE. $2.20 millionWith the 20 percent tax on luxury boats,OA. the buyer pays all of the tax.OB. the seller pays all of the tax.OC. the buyer and the seller split the tax evenly.O D. it is impossible to say how the tax is split between the buyerand seller.OE. the tax reduces the quantity of luxury boats sold to zero, sothere is no tax.tgO6OllySelected:none&7UO*8O▸(97OThe supply of luxury boats is perfectly elastic, the demand forluxury boats is unit elastic, and with no tax on luxury boats theprice is $2 million and 220 luxury boats a week are bought.3.20-2.80-2.40-2.00-1.60-88Price (millions of dollars per boat)176220Quantity (boats per week)sss Draw only the nhierte enerified in the questionDelete Clear")0132pD+$+tax264NextQQSUSbac

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The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is A. $0.40 million B. $2.40 million OC. $220 million OD. $2 million OE. $2.20 million With the 20 percent tax on luxury boats, A. the buyer pays all of the tax. OB. the seller pays all of the tax. OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split between the buyer and seller. OE. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. Selected: ... The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $2 million and 220 luxury boats a week are bought. 3.20 2.80 2.40- 2.00- 1.60+ 88 Price (millions of dollars per boat) -$+tax 132 176 220 Quantity (boats per week) >>> Draw only the nhierte enerified in the nuection 264

The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is A. $0.40 million B. $2.40 million OC. $220 million OD. $2 million OE. $2.20 million With the 20 percent tax on luxury boats, A. the buyer pays all of the tax. OB. the seller pays all of the tax. OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split between the buyer and seller. OE. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. Selected: ... The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $2 million and 220 luxury boats a week are bought. 3.20 2.80 2.40- 2.00- 1.60+ 88 Price (millions of dollars per boat) -$+tax 132 176 220 Quantity (boats per week) >>> Draw only the nhierte enerified in the nuection 264

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

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Time left 0:. 21) The elasticity of demand for potato chips is 0.6 and the elasticity of supply for these chips is 1.9. If a tax were imposed on purchases of potato chips, then the O a. consumers would pay more of the tax. O b. the producers would pay more of the tax. C. the tax would be equally shared by the consumers and the producers. O d. the consumers would pay the entire tax because their demand is less elastic than the producers' supply. Clear my choice age Next page
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Time left C If the government wishes to discourage smoking by tax increases, the buyer pays a larger share of the tax if the: Select one: O a. tax is imposed on the buyer O b. demand is price inelastic O c. supply is price inelastic O d. tax is imposed on the seller O e. price is higher Next
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