Answer: hello your question is poorly structured attached below is the missing graph and missing part of the question
Assume the government imposes a $1.00 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed.
answer :
a) $2 , 4 billion
b) $2.5
c) $1.5
d) 3 billion
e) $3 billion
Explanation:
a) equilibrium price = $2 per bottle
equilibrium quantity = 4 billion bottles
b) After imposition of excise tax
consumers will pay = $2.5
c) The amount producers keep after the imposition of taxes
= $2.5 - tax
= 2.5 - 1 = $1.5
d) New equilibrium quantity ( after tax is imposed )
= 3 billion bottles ( from graph attached ) i.e. intersection of S2 and D
e) Amount of tax revenue collected by the government from the imposition of tax
= quantity of bottles sold * $1
= 3 billion * $1 = $3 billion
