Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of...

 

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Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of soda to improve the health of its citizens. Manipulate the accompanying graph to demonstrate the impact of the tax on the market for soda What would be the new equilibrium quantity if instead of taxing consumers, the city taxed producers? thousand bottles Price ($/bottle) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 0 1 Market for Bottles of Soda 2 6 7 3 4 5 Quantity (thousands of bottles) D 8 9 O 10 Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of soda to improve the health of its citizens. Manipulate the accompanying graph to demonstrate the impact of the tax on the market for soda What would be the new equilibrium quantity if instead of taxing consumers, the city taxed producers? thousand bottles Price ($/bottle) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 0 1 Market for Bottles of Soda 2 6 7 3 4 5 Quantity (thousands of bottles) D 8 9 O 10

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