Question: The following graph represents the demand and supply for an imaginary good called a Pinckney. The black point (plus symbol) indicates the pre-tax equilibrium. Suppose

The following graph represents the demand and supply for an imaginary good called a Pinckney. The black point (plus symbol) indicates the pre-tax equilibrium.
Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.
Demand Supply 28.00 в с B 20.00 12.00 QUANTITY (Pinckneys) PRICE (Dollars per pinckney)

Complete the following table, given the information presented on the graph.
Result Value
Per-unit tax rate.........................................................______
Equilibrium quantity before tax................................______
Price consumers pay after tax ...................................______
In the following table, indicate which of the previous graphs areas corresponds to each concept. Check all that apply.

Concept A B D E Consumer surplus after the tax is imposed Producer surplus before the tax is imposed Tax revenue after t

Demand Supply 28.00 B 20.00 12.00 QUANTITY (Pinckneys) PRICE (Dollars per pinckney) Concept A B D E Consumer surplus after the tax is imposed Producer surplus before the tax is imposed Tax revenue after the tax is imposed

Step by Step Solution

3.44 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Initially the equilibrium price is 20 and equilibrium quantity is ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1019-B-C-A-T-A(1890).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!