The graphs below show the market for bags of potato chips, which is currently at an...
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The graphs below show the market for bags of potato chips, which is currently at an equilibrium price of $1.33 per bag and an equilibrium quantity of 5.33 million bags. Suppose that, in an attempt to lower blood pressure and reduce healthcare costs, the government imposes a $1.00 excise (or commodity) tax on potato chips. Please scroll down to answer all 6 questions. 1. Suppose the government levies this tax on manufacturers for each bag of potato chips they produce. Please shift the curve(s) to illustrate this." 5 2. What is the price paid per bag by consumers (Pc) with this new tax? 4.5 4. Number 3.5 $0 2.5 Supply 3. What is the price received net of tax (Pp) per bag by producers with this new tax? 2 1.5 Number 1 Demand 0.5 0 1 5 6 Quantity 4 7 8 6. 10 す 3. Price 4. Suppose the government, instead of levying the tax on producers, levies the tax on consumers for each bag of potato chips they purchase. Please shift the curve(s) to illustrate this. 5. What is the effective price paid per bag by consumers (Pc) with this new tax? 4.5 Number 3.5 $0 3 2.5 Supply 6. What is the price received net of tax (P,) per bag by producers with this new tax? 1.5 1 Number Demand 0.5 3 4 5 6 7 8. 10 Tools Quantity x 10? %24 2. 2. Price The graphs below show the market for bags of potato chips, which is currently at an equilibrium price of $1.33 per bag and an equilibrium quantity of 5.33 million bags. Suppose that, in an attempt to lower blood pressure and reduce healthcare costs, the government imposes a $1.00 excise (or commodity) tax on potato chips. Please scroll down to answer all 6 questions. 1. Suppose the government levies this tax on manufacturers for each bag of potato chips they produce. Please shift the curve(s) to illustrate this." 5 2. What is the price paid per bag by consumers (Pc) with this new tax? 4.5 4. Number 3.5 $0 2.5 Supply 3. What is the price received net of tax (Pp) per bag by producers with this new tax? 2 1.5 Number 1 Demand 0.5 0 1 5 6 Quantity 4 7 8 6. 10 す 3. Price 4. Suppose the government, instead of levying the tax on producers, levies the tax on consumers for each bag of potato chips they purchase. Please shift the curve(s) to illustrate this. 5. What is the effective price paid per bag by consumers (Pc) with this new tax? 4.5 Number 3.5 $0 3 2.5 Supply 6. What is the price received net of tax (P,) per bag by producers with this new tax? 1.5 1 Number Demand 0.5 3 4 5 6 7 8. 10 Tools Quantity x 10? %24 2. 2. Price
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