Please correct answer and don't use hand raiting 4. After levying tax on consumers, new supply and demandcurve given as Qs=P. Qd=100-(P+T). (Qd stands forquantity demanded, Qs quantity supplies, P is price, T istax on consumers.) (1) what is the tax revenue function inequilibrium? (2) what is unit tax amount T whenmaximizing government tax revenue?

To analyse the tax revenue function and determine the unit tax amount that maximises government tax…

Answered: 4. After levying tax on consumers, new…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.10P

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Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or Â£0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or Â£0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about Â£0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16
Suppose that gifts were taxed at a rate of 10 for amounts up to 100,000 and 20 for anything over that amount. Would this tax be regressive or progressive?
What are the main categories of U.S. federal government taxes?
ducer surplu... Practice midterm questions Review 10 9 8 7 PLEASE IGNORE Consider the supply and demand diagram corresponding with this question. Suppose that a per unit tax of $4 is placed on the good in question. At the new equilibrium, how much total tax revenue does the government collect? Price 6 5 SD3 Review 4 3 2 1 0 QEcon Mid-Sem... 1 12.0 2 3 4 Type your numeric answer and submit 5 diagram depicti... 6 7 8 9 D S 10 11 G supply a Confusing Quantity 12
3. Suppose demand and supply for your company's product is given by 1 1 Qd = 14 P and Q 2 - Pr – 1 4 %3D %3D a. Determine the equilibrium price and quantity for your company's product. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the product. Determine the impact of this excise tax on the equilibrium price and quantity for the product. c. How much tax revenue does the government earn with the $12 tax?
7
9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply curve shifted to the left such that the vertical distance between the original supply curve and the new (supply + tax) curve equals the sales tax divided by the price elasticity of demand. sales tax multiplied by the price elasticity of demand. sales tax multiplied by the price elasticity of supply. amount of the sales tax.
53. The side of the market with the relatively higher elasticity will face more of the tax burden. Select one: a. False b. True
(Answer the f) Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 + 2P. If the government then increases the seller's tax on the product amount of IDR 20/ unit of goods, what is the price and quantity of goods new balance Calculate the tax burden borne by consumers & manufacturers, as well governement tax revenue F. Calculate the amount of subsidy received by consumers and manufacturers , as well subsidies issued by the government
Tax Bracket : 0-$20,000 = 10% $20,001-$60,000 = 15% $60,001-$100,000 = 35% _______________________________ Jason makes $65,000, what is the approximate tax he would be paying? A. $22,750 B. $10,000 C. $8,750 D. Just take it all
Typed plz and asap thanks please provide me a quality solution thanks
PA P3 $ P2 P₁ 0 ош A Di E 93 B 92 Quantity U 91 Demand Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P1. If an excise tax raises the price from P1 to P2, the excess burden of the tax is area A) P3AP4. B) P1FBP2. _C) P1CBP2._____D) BFC. E) P2BP3.

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