Table 41 Shows the Demand and Supply Schedules for Bottles of of Wine

question 168

Essay

Table 4.1 shows the demand and supply schedules for bottles of wine (in thousands) for the economy of Newtown. $$\begin{array}{l}\text { Table } 4.1\\\begin{array} { l l l l } \hline \mathrm { P } & \mathrm { Q } _ { \mathrm { D } } & \mathrm { P } & \mathrm { Q } _ { \mathrm { S } } \\\hline 34 & 8 & 34 & 28 \\32 & 13 & 32 & 23 \\30 & 18 & 30 & 18 \\28 & 23 & 28 & 13 \\\hline\end{array}\end{array}$$ a) If the government impose $4 per unit tax, what will be the new price and quantity?
b) What will be the total tax revenue?
c) What portion of the tax revenue is paid by the consumers?

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Definitions:

Economic Relations

Refers to the interactions and transactions among individuals, businesses, and governments concerning the production, distribution, and consumption of goods and services.

Capitalist System

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Social Relations

The interactions and connections among individuals within a society, shaping each other's behaviors, attitudes, and social structures.

Material Success

The accumulation of tangible wealth and possessions that are often seen as indicators of one's status or success in society.