- Refer To The Interactive Below Tax Burden Ben On Ii Graph Tax Burden Settings Demand 5 Price Supply Tax Imposed On 9 1 (37.58 KiB) Viewed 19 times
- Refer To The Interactive Below Tax Burden Ben On Ii Graph Tax Burden Settings Demand 5 Price Supply Tax Imposed On 9 2 (38.58 KiB) Viewed 19 times
Instructions Adjust the sliders so that the vertical intercept of the supply curve is $20 and the demand curve is perfectly inelastic Click the Tox Burden switch above the graph to On. Make additional modifications to the interactive tool as indicated to answer the following questions a) If there is no tax, the equilibrium price is $50. If a $15 tax paid on sellers is implemented, the buyer will pay $ and the burden of the tax (Click to select) b) Suppose the supply curve gradually changed to become more elastic with the original equilibrium remaining at (0.P) = (4000, $50) and no change to the demand curve. Complete the following statements that describe the effects of this change in supply elasticity The quantity bought and sold O increases increases and then decreases does not change decreases Odecreases and then increases The government's revenue decreases and then increases increases and then decreases decreases O does not change H0 The consumers' share of the tax burden, measured as percentage of government's revenue derived from consumers, O decreases decreases and then increases increases and then decreases O does not change increases The producers' share of the tax burden, measured as percentage of government's revenue derived from producers, increases increases and then decreases O decreases and then increases does not change decreases increases