Figure 8-4 The vertical distance between points A and B represents a tax in the market. 15 14 13+ 12 11+ 10 9 Price Supply Demand +T 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 Quantity Refer to Figure 8-4. The price that sellers effectively receive after the tax is imposed is
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- Price ($) 34 32 30 28 26 24 28864 NO 22 20 18 16 14 12 10 864 2 1 2 3 4 5 S D 678 9 10 11 12 13 14 15 16 17 Quantity Suppose an $8 tax is imposed on sellers in the market shown in the graph. What is the tax-inclusive price paid by the buyers as a result of this tax?Figure 8-3 The vertical distance between points A and B represents a tax in the market. PRICE 56822388& 44 20 24 20 12 Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Refer to Figure 8-3. Suppose a 20 th unit of the good were sold by a seller to a buyer. Which of the following statements is correct? a. For the 20 th unit, the difference between the buyer's value and the seller's cost is less than the tax per unit. b. For the 20 th unit, the difference between the buyer's value and the seller's cost is equal to the tax per unit. c. For the 20 th unit, the difference between the buyer's value and the seller's cost is greater than the tax per unit. d. It makes sense for the buyer to buy and for the seller to sell the 20 th unit, with or without the tax in place.7. In an attempt to help the local truck manufacturing industry, the Australian government imposes a tax on cach foreign truck sold in Australia. The pre-tax demand and supply schedules for imported trucks are given in the table below. Price ($) Quantity Demanded (Thousands) Quantity Supplied (Thousands) 32 000 100 400 31 000 200 300 350 30 000 300 29 000 400 250 28 000 500 200 27 000 600 150 a. In the absence of government intervention, find the equilibrium price and explain how you derived your answer. b. If the government imposes a tax of $3000 per imported truck, find the equilibrium quantity traded, the equilibrium buyer's price and the equilibrium seller's price. Explain your answers. c. Explain whether consumer surplus has decreased by $200 million, more than $200million or less than $200 million.
- 2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Find the equilibrium price and quantity ii. If a tax of GH¢ 10.00 per unit is imposed calculate the equilibrium price and quantity iii. The distribution of tax Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate th profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢ 15 in the marketnt 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 quantity12 11+ 10 9 166 8 7+ 6 5- st 4 3+ 2- 1 Price A Supply Demand 05 1 15 2 25 3 35 4 45 5 Quantity 26. Refer to Figure 8-2. The imposition of the tax causes the quantity sold to a. increase by 1 unit. b. decrease by 1 unit. c. increase by 2 units. d. decrease by 2 units. 27. Refer to Figure 8-2. The imposition of the tax causes the price received by sellers to a. decrease by $2. b. increase by $3. c. decrease by $4. d. increase by $5. 28. Refer to Figure 8-2. The per-unit burden of the tax on buyers is a. $2. b. $3. c. $4. d. $5. 29. Refer to Figure 8-2. The loss of consumer surplus as a result of the tax is a. $1.50. b. $3. c. $4.50. d. $6.
- Price 21 20 10.5 10 9.5 0 Market for Pants Sup De 100 150 Suppose a $1 per unit tax is placed on buyers of pants. Calculate how much tax revenue comes from producers of pants. $50 $25 $0 $100Figure 8-7 Price $22 20 18 16 14 12 10- 8 640 2 0 -Tax 5 10 15 20 25 30 35 40 45 50 a. $30 b. $40 C. $20 d. $50 x S Figure 8-7 D Refer to Figure 8-7. What is the amount of deadweight loss in this market resulting from the levying of the tax on the seller? QuantityFigure 8-2 The vertical distance between points A and B represents a tax in the market. Price 12 * 11+ 10 + Supply A 9 8+ 7- 6 4 3+ 2 1 Demand ++ 45 5 05 1 15 2 25 3 35 4 Quantity Refer to Figure 8-2. Total surplus without the tax is $10, and total surplus with the tax is $2.50. $10, and total surplus with the tax is $7.50. $20, and total surplus with the tax is $2.50. $20, and total surplus with the tax is $7.50.
- Figure 6-8 Price $9 00 8 7 5 44 3 2 1 0 10 20 30 40 50 60 70 Quantity Refer to Figure 6-8. What is the price buyers will pay after the tax is imposed? a. $5.00 O b. $7.00 Oc. $6.00 Od. $8.00QUESTION 10 Figure 6-24 16 30 24- Price 18- 12+ 6+ 80 160 210 240 Supply D₂ D₁ 320 Quantity Refer to Figure 6-24. The per-unit burden of the tax on buyers of the good is O a. $4. O b. $6. O c. $8. O d. $2.ut Figure 6-13 Price F1 Price 191-4 on this page 2 W F2 # (a) 3 (c) E 80 fer to Figure 6-13. In which market will the maiority of a tax be paid by the buyer? F3 Quantity $ 4 Quantity R Price F4 Price 5 0 F5 (b) (d) 6 D F6 Quantity D Quantity & 7 F7 8 DII F8