Exercise 8

Carlos Graterol Exercise 8 1)A.) Tax A – 1,250 Tax B – 1,000 Tax C – 1,500 Tax D – 1,125 Tax E – 1,125 Tax F – 500 B.) Tax A– 12% Tax – B – 6.67% Tax – C – 10% Tax – D – 7.5% Tax – E – 7.5% Tax – F – 3.33% C Tax A – 15% Tax B – 10% Tax C – 10% Tax D – 5% Tax E – 7.5% Tax F – 0% 2) A) Tax A – 3,000 Tax B – 2,000 Tax C – 2,500 Tax D – 1,500 Tax E – 1,500 Tax F – 500 B) Tax A – 12% Tax B – 8% Tax C – 10% Tax D – 6% Tax E – 6% Tax F – 2% C) Tax A – 20% Tax B – 10% Tax C – 10% Tax D – 2.5% Tax E – 0% Tax F – 0%

3) A) Proportional B) Progressive C) Proportional D) Regressive E) Regressive F) Regressive 4) 5) A) EQ w/o Tax – 25 B) EP w/o Tax $3.00 C) EQ w/Tax 20 D) EP w/Tax $5.00 6) .375 Inelastic 7) Buyers 80% Sellers 20% 8) $6,250 9) 10) A) EQ w/o Tax – 25 B) EP w/o Tax $3.00 C) EQ w/Tax 15 D) EP w/Tax $4.00 11) 2, Elastic 12) Buyers 50% Sellers 50% 13)10,000 14) Decreases Increases Increases