Using the Graph Shown, in Which the Vertical Distance Between

question 638

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?

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Definitions:

Production

refers to the process of creating goods and services through the combination of human labor, materials, and technology.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness.

Cultural Understanding

The awareness, knowledge, and sensitivity to understand individuals and groups from diverse cultures, facilitating effective communication and interaction.

Business Customs

Traditional practices, behaviors, and etiquette considered standard and acceptable in the business environment of a particular region or culture.