Using the Graph Shown, in Which the Vertical Distance Between

question 342

Essay

Using the graph shown, in which the vertical distance between points A and B represents the tax in the market, answer the following questions.
a. What was the equilibrium price and quantity in this market before the tax?
b. What is the amount of the tax?
c. How much of the tax will the buyers pay?
d. How much of the tax will the sellers pay?
e. How much will the buyer pay for the product after the tax is imposed?
f. How much will the seller receive after the tax is imposed?
g. As a result of the tax, what has happened to the level of market activity?

a.What was the equilibrium price and quantity in this market before the tax?
b.What is the amount of the tax?
c.How much of the tax will the buyers pay?
d.How much of the tax will the sellers pay?
e.How much will the buyer pay for the product after the tax is imposed?

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Definitions:

Sensory Information

Data obtained from the environment by sensory receptors, then transmitted to the brain for processing and response.

Superior Colliculi

Paired structures located on the dorsal aspect of the midbrain, involved in processing visual (and other sensory) information and coordinating eye movements.

Reflexively Duck

An automatic, quick response to move or lower the head to avoid a hazard or threat.

Reticular Formation

A complex network of nerve pathways within the brainstem involved in consciousness and the regulation of sleep-wake cycles.