(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
For this problem, you are asked to analyze the effects of a government-imposed excise tax of three thousand dollars per truck.
(Description)
The table from part A is briefly shown.
(Speaker)
We are going to start with our graph from part A and find the tax wedge of three thousand dollars.
(Description)
The graph from part A is shown.
(Speaker)
The tax will shift the supply curve up by three thousand dollars. We have labeled this line s plus tax.
(Description)
Lines, S, shifts up by 3 thousand dollars. The new supply line is labeled as S plus tax. It intersects with the line, D, at point with coordinates, 200 thousand trucks and 31 thousand dollars.
There are 3 dotted lines drawn from points, 200 thousand cars, on the horizontal axis, and from points, 31 thousand dollars, and, 28 thousand dollars, on the vertical axis. The first line is parallel to the vertical axis, the second and the thirds lines are parallel to the horizontal axis. The first and the second lines intersect at a right angle at point with coordinates, 200 thousand cars and 31 thousand dollars, the first and the third lines intersect at a right angle at point with coordinates, 200 thousand cars and 28 thousand dollars.
(Speaker)
We can also see the excise tax has created a wedge the equilibrium price is thirty-one thousand dollars, but producers will only receive twenty-eight thousand dollars as they have to pay a tax of three thousand dollars per truck.
(Description)
The interval between 28 thousand and 31 thousand dollars on the y-axis is put in a bracket and labeled as Excise tax equals 3 thousand dollars per truck.
(Speaker)
There will be two hundred thousand trucks sold. We can also see the excise tax has created a wedge. Using the data in the table we want to find where quantity demand equals quantity supply but the price differs by the amount of the tax.
(Description)
The table from part A is shown.
(Speaker)
We can see that at a quantity demand of 200 thousand trucks consumers are willing to pay thirty-one thousand dollars.
(Description)
The corresponding data in the second row is highlighted.
(Speaker)
At a quantity supplied of 200 thousand, suppliers are willing to accept a price of 28 thousand dollars.
(Description)
The corresponding data in the fifth row is highlighted.
(Speaker)
Notice the difference is three thousand dollars.