40) Use the following graph for a competitive market to answer the question below.$3.50*$2.50300 400Price A$1.25DQuantityAssume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curvefrom S1 to S2. How much of the total tax revenue is paid by the buyer?41) You have decided that you want to attend a costume party as Iron Man. You estimate that it will cost$40 to assemble your costume. After spending $40 on the costume, you realize that the additional piecesyou need will cost you $25 more. The marginal cost of completing the costume is $( ).

***Since the student has posted multiple questions, the expert is required to solve only the first…

40) Use the following graph for a competitive market to answer the question below. Price $3.50 $2.50 $1.25 Quantity Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer? 300 400

40) Use the following graph for a competitive market to answer the question below. Price $3.50 $2.50 $1.25 Quantity Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer? 300 400

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 4QP

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