please help? 4. The Laffer curve Governments often place so-called sin taxes on

Q: please help? 4. The Laffer curve Governments often place so-called sin taxes on

The equilibrium quantity, at $8 tax rate, would be 60,000 DVDs, since the supply of demand curve intersect at this point. The Government collects ($8 × 60,000 =) $480,000 in tax revenue.

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please help? 4. The Laffer curve Governments often place so-called sin taxes on goods or services such as cigarettes, alcohol, and pornography. These kinds of taxes are popular with politicians because they are usually more palatable to voters than income taxes. To understand the effect of such a tax, consider the monthly market for adult DVDs, which is shown on the following graph. Suppose the initial tax on suppliers is set at zero dollars per DVD. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Adult DVDs 40 6 32 28 24 Sur p VDs) Demand Price Dolars per DVD) oma ) 36.00Pv)4.00 20 Supply Shifter 16 Tax on Suppliers Dollars per Dvb 0.00 0 12 24 36 48 60 72 84 96 108 120 QUANTITY (Thousands of DVDs

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The equilibrium quantity, at $8 tax rate, would be 60,000 DVDs, since the supply of demand curve intersect at this point.

The Government collects ($8 × 60,000 =) $480,000 in tax revenue.

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please help? 4. The Laffer curve Governments often place so-called sin taxes on

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