Question

In the graph below, the blue solid curves are pre-tax, and the red dashed curve is post-tax. Based on the graph, select ALL of the following are TRUE at the post-tax equilibrium:

In the graph below, the blue solid curves are pre-tax, and the red dashed curve is post-tax. Based on the graph, select ALL of the following are TRUE at the post-tax equilibrium: Price ni 01 5 10 15 20 25 30 35 40 45 50 Quantity

A. The total price the buyer pays is PD = $23.

B. The supplier submits the tax to the government.

C. The net price the seller receives is PS = $23.

D. The tax is $4 per unit.

E. The tax is 4% of the price.

F. The demander submits the tax to the government.

Question 7 of 10 At the equilibrium price of $15, the elasticity of demand and supply are –0.7 and 1.25. If the government institutes a tax of $1 per unit, sellers will receive ______and consumers will pay ______.

• A. $14.73, $15.73
• B. $15.64, $16.64
• C. $14.64, $15.64
• D. $15.73, $16.73

Answer 1

Page No.: a by buyer after tax = $23 total Price paid by buyer after supplier pard the tax ble supply ewe changes. wwe on seller receives $19. ta x = 23-19-4 This statment A B C D are bue. Consumer share Producer show- Consuma share 1.25 proclucer Share 0.7 Consumer share = 1.7857 Producer Shares 9.7857 Produchshare=1 Producer shav= I =0.35 Produer recives = 15-0.35=14.65 Consumer pays = 15+0.65=15.65 Aus is Ç