The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays the entil tax. Draw the supply curve of coal. Label it S. Draw a second supply curve that shows the effect of the tax. Label it S + tax. The more the supply of coal, OA. elastic; the larger is the amount of the tax paid by the buyer OB. elastic; the more equally is the split of the tax between the buyer. and the seller OC. inelastic; the larger is the amount of the tax paid by the buyer OD. elastic; the larger is the amount of the tax paid by the seller 60- 50- 40- 30- 20- 10- Price (dollars per ton) 0- 0 D 60 OO 20 80 100 40 Quantity (thousands of tons per year) >>> Draw only the objects specified in the question. 120 G

The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays the entil tax. Draw the supply curve of coal. Label it S. Draw a second supply curve that shows the effect of the tax. Label it S + tax. The more the supply of coal, OA. elastic; the larger is the amount of the tax paid by the buyer OB. elastic; the more equally is the split of the tax between the buyer. and the seller OC. inelastic; the larger is the amount of the tax paid by the buyer OD. elastic; the larger is the amount of the tax paid by the seller 60- 50- 40- 30- 20- 10- Price (dollars per ton) 0- 0 D 60 OO 20 80 100 40 Quantity (thousands of tons per year) >>> Draw only the objects specified in the question. 120 G

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 6CQQ

See similar textbooks

Similar questions

What is the relationship between total surplus and economic efficiency?
Energy dnnKS has been causing dea th Senator Miller proposes 8 2 tax ( that on average cost $ 2. on the arnnks Senator cruz thinks is too nigh. in response, the Miller Bill was fixed to make it a $ I tax. DRAW A ORAPA. Locate equilibrium price and quantity. which letters reppsent the proaucer and oonsumer $urplus Z ata before the tax ? which repruent after the tax ? Did the surplus increase or decrease? why}
2. Suppose the price.elasticity of demand for commödity M is less than one. When a tax is imposed on commodity Mproduetion, it changes the price, quantity, and consumer speņding in which of the following ways? - Price Quantity Spending Irierease Decrease Decreàse. Therease Ancrease a. Increase- b. -Deerease Decrease Decrease Decrease - Decrease Iacrease
7. Effect of a tax on buyers and sellers The following graph shows the daily market for jeans. Suppose the govermment institutes a tax of $23.20 per pair. This plae price buyers pay and the price sellers recelve. 100 90 Supply Tax Wedge 50 40 30 20 10 Demand 10 20 40 50 60 70 100 QUANTITY (Pairs of jeans) R8S PRICE (Dollars per pair)
When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500 tickets. One day, an airline tax is levied equal to $10.00 and output falls to 37,000 tickets. Assume that air travelers end up paying 75% of the tax. Calculate the price elasticity of demand and & interpret coefficient. Use the general formula, not the mid point formula Calculate the price elasticity of supply and interpret coefficient. Use the general formula, not the mid point formula. How do total sales in the airline market before and after the tax support your answer in (n) and/or (o)?
If buyers pay more of a tax than do the sellers اختر أحد الخيارات a. demand is more elastic than supply O .b. supply is more elastic than demand O C. None of the above answers is correct O .d. the equilibrium price paid by buyers rises by less than half the amount of the tax „e. the amount of tax revenue collected by the government is almost zero
Suppose the federal govemment requires beer drink·ers 10 pay a $2 tax on each case of beer purchased. (Infact, both the federal and state governments imposebeer taxes of some sort.}a . Draw a supply-and-demand diagram of the mar·kct for beer without the tax. Show the price paidby consumers, the price n..~cived by producers*and the quantity of beer sold. What is the differ>encc between t~ price paid by consumers and theprice received by producers?b. Now draw a suppl)'•and--dem.and diagram fort~beer market with t~ tax. Show the price paid byconsumers, the price received by producers, andthe quantity olbec.r sold. What is the differencebetween the price paid by consumers and theprice received by producers? Has the quantity olbeer sold incrca.<;ed or decreased?
Q Sea Aplia Homework: Elasticity of Demand and Supply The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then, enter zero in the Tax on Sellers field. You should see a tax wedge between the price buyers pay and the price sellers receive.) Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 50 Market for Jeans 45 I Quantity (Pairs of jeans) 50 40 Supply Demand Price (Dollars per pair) Supply Price (Dollars per pair) 75.00 17.00 35 30 25 Supply…
Alcohol, tobacco, and gasoline have inelastic demand, so the buyers of these items pay most of the tax on them.” Show and explain this statement with the help of hypothetical demand and supply graph.
11. Consider public policy aimed at smoking. a. Studies indicate that the price elasticity ofdemand for cigarettes is about 0.4. If a packof cigarettes currently costs $2 and thegovernment wants to reduce smoking by20 percent, by how much should it increasethe price? b. If the government permanently increasesthe price of cigarettes, will the policy have alarger effect on smoking one year from nowor five years from now? c. Studies also find that teenagers have ahigher price elasticity than do adults. Whymight this be true?
4 Q-2Economics deals with the question as to “how to acquire more and more wealth by a nation,” and “how to utilize this wealth for obtaining material gains of human life.” Explain in detail what are the various sources of income for Oman and how it spends the income for the development of the country. Q-3Provide a situation where “more than unit elastic demand” is shown. Illustrate your answer by presenting suitable consumer produc in a graph. I need answer for two 2 queation and seapachily for 3
3. Setormilients of demand The following grapn enews comano curve for secans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that are arcical and mail for the same price. Initially, the graph shows market demand under the following circumstances: Average household COMES $50,000 per year, the face of a gallon of gas is $4.00 per gallon. 1808 the wiput cool to help you answer the following questions you will not be graded on any changes you make to this graph. Note. Once you intevole in a white teld, the graph and any corresponding amounts in each grey field will change accordingly. Damund for Seciamy Demand 40000 900 100 300 QUANTITY (Sedans per month) Graph Input Tool Demand for Sedans Price of a sedan 25 (Thousand of dollars) Quantity 338 Demanded (Sedens per month) Demand Shifters Average Income (Thousands of dollars) 50 Price of Gas (Dollars per gallon) E Consider the grabil Suppose that the price of a sedan decreased from $25,000 to $20,000.…