Plz helpGraph plz 3 The data describes the market for luxury boats.Now the government puts 20 percent tax on luxury boats.With the tax imposed, the price of a luxury boat is%5OA. $0.40 millionOB. $2.40 millionOC. $220 millionOD. $2 millionOE. $2.20 million8With the 20 percent tax on luxury boats,A. the buyer pays all of the tax.OB. the seller pays all of the tax.OC. the buyer and the seller split the tax evenly.OD. it is impossible to say how the tax is split between the buyerand seller.tO E. the tax reduces the quantity of luxury boats sold to zero, sothere is no tax.O6yh887&Selected:noneO*8O70(9DOThe supply of luxury boats is perfectly elastic, the demand forluxury boats is unit elastic, and with no tax on luxury boats theprice is $2 million and 220 luxury boats a week are bought.3.20-2.80-2.40-2.001.6088+Price (millions of dollars per boat)220176Quantity (boats per week)sss Draw only the nhierts snerified in the questionDelete Clear0132р?D+$+tax264NextQUStDA UC. the buyer and the seller split the tax evenly.O D.it is impossible to say how the tax is split between the buyerand seller.O E. the tax reduces the quantity of luxury boats sold to zero, sothere is no tax.The government raises tax revenue of $74.8 million.>>> Answer to 1 decimal place.The graph shows the market for luxury boats before and after the 20percent tax is put on luxury boats.Draw a shape that represents the excess burden of the tax.The tax isbecause at the quantity producedO A. inefficient; marginal cost exceeds marginal benefitOB. efficient; marginal benefit exceeds marginal costOC. efficient; marginal cost exceeds marginal benefitOD. inefficient; marginal benefit exceeds marginal costOE. efficient; the seller receives the price the buyer paysSelected:noneThe supply of luxury boatluxury boats is unit elasticprice is $2 million and 2203.202.80-2.40-2.00-1.60+88Price (millions of d132Delete ClearQuantity (E>>> Draw only the obie

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The graph shows the market for luxury boats before and after the 20 percent tax is put on luxury boats. Draw a shape that represents the excess burden of the tax. The tax is because at the quantity produced O A. inefficient; marginal cost exceeds marginal benefit OB. efficient; marginal benefit exceeds marginal cost C. efficient; marginal cost exceeds marginal benefit OD. inefficient; marginal benefit exceeds marginal cost OE. efficient; the seller receives the price the buyer pays Selected: 2.80- 2.40 2.00- 1.60+ 88 >>>

The graph shows the market for luxury boats before and after the 20 percent tax is put on luxury boats. Draw a shape that represents the excess burden of the tax. The tax is because at the quantity produced O A. inefficient; marginal cost exceeds marginal benefit OB. efficient; marginal benefit exceeds marginal cost C. efficient; marginal cost exceeds marginal benefit OD. inefficient; marginal benefit exceeds marginal cost OE. efficient; the seller receives the price the buyer pays Selected: 2.80- 2.40 2.00- 1.60+ 88 >>>

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...

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