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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

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