The filled table, showing the quantity sold, the buyers' price, and the price sellers receive before and after the imposition of a tax of $40.60 per pair of jeans, is as follows:
Quantity Price Buyers Pay Price Sellers Receive
Before-tax 500 $100.00 $100
After-tax 430 $105.60 $65 ($105.60 - $40.60)
Tax burden 70 $5.60 $35
($105.60 - $100) ($100 - $65)
The tax wedge is a measure of the difference between before-tax and after-tax prices that buyers and sellers pay and receive, respectively.
The tax wedge or burden shows the amount ($40.60 per pair) that the government which institutes the tax receives.
Table showing the variables to fill:
Quantity Price Buyers Pay Price Sellers Receive
Before-tax 500 $ $
After-tax 430 $ $
Tax burden $ $
See attached graph for details.
Learn more about tax burdens and effects at https://brainly.com/question/24245749
The graph illustrates that the quantity and the price before tax are 50 and $100 respectively.
From the complete question, in the graph, it can be noted that the quantity and the price before tax are 50 and $100 respectively.
Also, the quantity and the price after tax are 45 and $105.60 respectively. the increase in the tax brought about the reduction in the quantity demanded.
Lastly, the tax burden on the buyers will be:
= $105.60 - $100
= $5.60
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