HW 3(section 15)

HW 3(section 15) - Sellers Pay Tax (Session 2) $0 $5 $10...

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Experiment 3, Section 15 Problem 3.1 Part a) rise, less than Part b) fall, less than Part c) 165 Part d) more than Problem 3.2 Part a) fall, less than Part b) rise, less than Part c) 180 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 PriceofApples
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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 Mean Price $23.00 $30-$33 $15-$18 Number of Transactions 15 9 9 Total Profit of Buyers $180.00 $76.50 $76.50 Total Profits of Sellers $160.00 $76.50 $76.50 Total Taxes Collected $0.00 $135.00 $135.00 Total of Profits Plus Taxes $340.00 $288.00 $288.00 Excess Burden $52.00 $52.00 Buyers Pay Tax (Session 3) No Tax (Session 1)
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Unformatted text preview: Sellers Pay Tax (Session 2) $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 5 10 15 20 25 30 35 40 Bushels of Apples PriceofApples Problem 3.6 Table 3.9 Comparing Theory and Experiment Sellers Pay Buyers Pay Tax (Session 3) Cpmp. Exp. Comp. Exp Prediction Outcome Prediction Outcome Mean Price $30-$33 $30.59 $15-$18 $16.89 Number of Transactions 9 11 9 12 Total Profit of Buyers $76.50 $73.49 $76.50 $67.28 Total Profit of Sellers $76.50 $58.51 $76.50 $76.72 Total Taxes Collected $135.00 $165.00 $135.00 $180.00 Total of Profits Plus Taxes $288.00 $297.00 $288.00 $324.00 Excess Burden $52.00 $32.00 $52.00 $5.00 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. Sellers Pay Tax (Session 2)...
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HW 3(section 15) - Sellers Pay Tax (Session 2) $0 $5 $10...

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