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 $23.20 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. PRICE (Dollars per pair) 160 Supply 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of jeans) Before Tax After Tax Graph Input Tool Market for Jeans Quantity (Pairs of jeans) Demand Price (Dollars per pair) 50 300.00 Supply Price (Dollars per pair) Supply Shifter Tax on Sellers (Dollars per pair) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Price Sellers Receive Quantity Price Buyers Pay (Pairs of jeans) (Dollars per pair) (Dollars per pair) 68.00 0.00
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 $23.20 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. PRICE (Dollars per pair) 160 Supply 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Pairs of jeans) Before Tax After Tax Graph Input Tool Market for Jeans Quantity (Pairs of jeans) Demand Price (Dollars per pair) 50 300.00 Supply Price (Dollars per pair) Supply Shifter Tax on Sellers (Dollars per pair) Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Price Sellers Receive Quantity Price Buyers Pay (Pairs of jeans) (Dollars per pair) (Dollars per pair) 68.00 0.00
Chapter4: Markets In Action
Section: Chapter Questions
Problem 1SQP
Related questions
Question
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 $23.20 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.
|
Market for Jeans
|
|||
|---|---|---|---|
|
Quantity
(Pairs of jeans)
|
|
||
|
Demand Price
(Dollars per pair)
|
|
Supply Price
(Dollars per pair)
|
|
|
|
|
Supply Shifter
|
|
|---|---|---|---|
|
Tax on Sellers
(Dollars per pair)
|
|
Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
|
|
Quantity
|
Price Buyers Pay
|
Price Sellers Receive
|
|---|---|---|---|
|
(Pairs of jeans)
|
(Dollars per pair)
|
(Dollars per pair)
|
|
| Before Tax |
|
|
|
| After Tax |
|
|
|
Transcribed Image Text: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 $23.20 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.
PRICE (Dollars per pair)
200
180
160
140
120
100
80
60
40
20
0
Demand
Supply
0 50 100 150 200 250 300 350 400 450 500
QUANTITY (Pairs of jeans)
Before Tax
After Tax
Graph Input Tool
Market for Jeans
Quantity
(Pairs of jeans)
Demand Price
(Dollars per pair)
50
300.00
Supply Price
(Dollars per pair)
Supply Shifter
Tax on Sellers
(Dollars per pair)
Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax.
Quantity
Price Buyers Pay
(Dollars per pair)
Price Sellers Receive
(Dollars per pair)
(Pairs of jeans)
?
68.00
0.00
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