The table below presents the annual market for sofas in Akron, Ohio. Suppose the state government imposes a $250 excise tax onevery sofa sold to be paid by customers at the point of sale.Market for SofasPrice(dollars)$1,2401,1801,1201,0601,000940880820760780Quantity of SofasDemandedINO200230260290320350380410449 M470Quantity of SofasSupplied300 TYGO280260240220200sofas180160140120Quantity of Sofas Demanded withExcise Tax5080118140WACH178200230260290320Instructions: Enter your answers as a whole number.a. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron?b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed?$c. After the excise tax is imposed, what is the new equilibrium quantity of sofas?sofasd. What is the total amount of revenue collected by the government from the excise tax on sofas?$

An excise tax is a particular kind of tax that is imposed on particular goods, services, or things…

The table below presents the annual market for sofas in Akron, Ohio. Suppose the state government imposes a $250 excise tax on every sofa sold to be paid by customers at the point of sale. Market for Sofas Price (dollars) $1,240 1,180 1,120 1,060 1,000 940 880 820 760 788 Quantity of Sofas Demanded 200 230 260 298 320 350 380 410 449 470 FIEALON Quantity of Sofas Supplied 300 280 260 240 220 200 180 160 140 120 Quantity of Sofas Demanded with Excise Tax 50 80 110 140 170 200 230 260 290 320 Instructions: Enter your answers as a whole number. a. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron? P=$ Q= sofas b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? $1 c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? sofas d. What is the total amount of revenue collected by the government from the excise tax on sofas? $

The table below presents the annual market for sofas in Akron, Ohio. Suppose the state government imposes a $250 excise tax on every sofa sold to be paid by customers at the point of sale. Market for Sofas Price (dollars) $1,240 1,180 1,120 1,060 1,000 940 880 820 760 788 Quantity of Sofas Demanded 200 230 260 298 320 350 380 410 449 470 FIEALON Quantity of Sofas Supplied 300 280 260 240 220 200 180 160 140 120 Quantity of Sofas Demanded with Excise Tax 50 80 110 140 170 200 230 260 290 320 Instructions: Enter your answers as a whole number. a. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron? P=$ Q= sofas b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? $1 c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? sofas d. What is the total amount of revenue collected by the government from the excise tax on sofas? $

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 10PA

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