Suppose the government imposes a $10-per-case tax on suppliers. At this tax amount, the equilibrium quantity of champagne is TAX REVENUE (Dollars) Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per case. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. ? 500 450 400 350 300 200 200 150 100 50 0 0 5 10 15 20 25 TAX (Do 30 35 40 cases, and the government collects s 45 50 in tax revenue. Laffer Curve
Suppose the government imposes a $10-per-case tax on suppliers. At this tax amount, the equilibrium quantity of champagne is TAX REVENUE (Dollars) Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per case. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. ? 500 450 400 350 300 200 200 150 100 50 0 0 5 10 15 20 25 TAX (Do 30 35 40 cases, and the government collects s 45 50 in tax revenue. Laffer Curve
ChapterA: Working With Diagrams
Section: Chapter Questions
Problem 8QP
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