hwk3sec9 - Excess Burden $56.00 $56.00 $0 $5 $10 $15 $20...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Experiment 3, Section 9 Problem 3.1 Part a) rise, less than Part b) fall, less than Part c) 225 Part d) more than Problem 3.2 Part a) fall, less than Part b) rise, less than Part c) 225 Part d) more than Problem 3.3 Table 3.7: Effects of a Sales Tax on Suppliers $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 0 5 10 15 20 25 30 35 40 Bushels of Apples Price of Apples
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Problem 3.4 Figure 3.8: Effect of a Sales Tax on Demanders In this exercise, the competitive equilibrium price may fall in a discrete range. If that occurs, the mean price in the table below presents that range, and the profits to buyers and sellers are calculated using the midpoint of that range. Problem 3.5 Table 3.8 Competitive Equilibrium Predictions No Tax Sellers Pay Tax Buyers Pay Tax (Session 1) (Session 2) (Session 3) Mean Price $24.00 $30-$33 $15-$18 Number of Transactions 20 12 12 Total Profit of Buyers $220.00 $102.00 $102.00 Total Profits of Sellers $220.00 $102.00 $102.00 Total Taxes Collected $0.00 $180.00 $180.00 Total of Profits Plus Taxes $440.00 $384.00 $384.00
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Excess Burden $56.00 $56.00 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 5 10 15 20 25 30 35 40 Bushels of Apples Price of Apples y Problem 3.6 Table 3.9 Comparing Theory and Experiment Sellers Pa Sellers Pay Tax Buyers Pay Tax (Session 3) (Session 2) Cpmp. Exp. Comp. Exp Prediction Outcome Prediction Outcome Mean Price $30-$33 $28.83 $15-$18 $18.70 Number of Transactions 12 15 12 15 Total Profit of Buyers $102.00 $132.50 $102.00 $64.50 Total Profit of Sellers $102.00 $57.50 $102.00 $125.50 Total Taxes Collected $180.00 $225.00 $180.00 $225.00 Total of Profits Plus Taxes $384.00 $415.00 $384.00 $415.00 Excess Burden $56.00 $4.00 $56.00 $4.00 Problem 3.7 Part a). Decrease price to $30. Part b). No effect. Part c). No effect. Part d). Decrease profits by $20,000 Part e). No excess burden Problem 3.8 Part a). No effect. Part b). None. Part c). Increase price by $20. Part d). None....
View Full Document