econ homework 4

in the market for hats, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. the equilibrium quantity in the market for widgets is 200 per month when there is no tax. then a tax of $5 per hat is imposed. the price paid by buyers increases by $2 and the after-tax price received by sellers fall by $3. the government is able to raise $750 per month in revenue from the tax. the deadweight loss from the tax is

$125

suppose a tax $5 per unit is imposed on video game systems, and the tac causes the equilibrium quantity of gaming systems to decreases from 200 units to 100 units. the tax decreases consumer surplus by $450 and decreases producer surplus by $300. the deadweight loss from the tax is

$250suppose.

buyers of vaping liquid are required to send $0.50 to the government for every unit they buy. further, suppose this tax causes the effective price received by sellers of vaping liquid to fall by $0.20 per unit. which of the following statements of correct?

- the price paid by buyers is $0.30 per unit more than it was before the tax. - forty percent of the burden of the tax falls on sellers. - this tax causes the demand curve for vaping liquid to shift downward by $0.50 at each quantity.

when a new tax is placed on buyers of coffee,

buyers of coffee and sellers of coffee both are made worse off

deadweight loss is the

decline in total surplus that results from a tax

a tax burden

falls more heavily on the side of the market that is less elastic

if the government removes a $2 tax on buyers of wine coolers and imposes the same $2 tax on sellers of wine coolers, then the price paid by buyers will

not change, and the price received by sellers will not change

suppose a tax is created that the buyers of a good must ay to the government. this will raise the

price paid by buyers and lower the equilibrium quantity

if a tax is levied on the sellers of a product, then the supply curve will

shift up