7.Consider the tax schedules below:Marginal tax rateIncome bracketSchedule 1Schedule 2Schedule 3The 1st $100010%10%10%The 2nd $100010%20%20%The remainder10%20%30%(a) Draw the budget lines under the three tax schedules in one diagram. The vertical axis isa consumer good (c) while the horizontal axis is pre-tax income (y). Assume price of theconsumer good p 1. In the diagram, you should indicate the numerical values ofconsumption at pre-tax income levels of $1000, $2000 and $3000 respectively under thethree tax schedules.=(b) Do you think a change from Schedule 2 to Schedule 3:(i) implies the schedule becomes more or less progressive? Explain by providing thedefinition of "progressivity".

Step 1: Calculate the after-tax income for each income level (\$1000, \$2000, \$3000) under Schedule…

Answered: 7. Consider the tax schedules below:…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. $30 $20 $10 Price (P) of airline tickets (in dollars per ticket) How much of the per-ticket tax is paid by passengers? $40 230 200 190 2850 3000 Swith tax Sno tax D Figure 14 Image author created Quantity (Q) of airline tickets (thousands per day)
Help plz 3 6
Question 25 The burden of a tax on a good is said to fall completely on the producers if the: a. wages received by workers who produce the good increase by the amount of the tax. b. price paid by consumers for the good increases by the amount of the tax. c. price paid by consumers does not change. d. price paid by consumers for the good declines by the amount of the tax.
9. Effect of a tax on buyers and sellers The following graph shows the daily market for shoes when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $23.20 per pair, to be paid by the seller. 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. Hint: To see the impact of the tax, first enter the value of the tax in the Tax on Sellers field. Adjust the value in the price field to move the green line to the after-tax equilibrium so that quantity demanded equals quantity supplied. Graph Input Tool Market for Shoes 200 180 I Price (Dollars per pair) $100 160 Quantity Demanded (Pairs of shoes) Quantity Supplied (Pairs of shoes) Supply 250.00 250.00 140 120 100 Supply Shifter 80 Demand Tax on Sellers (Dollars per pair) 60 0.00 40 20 50 100 150 200 250…
1-3 please
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10,000 cases of beer were sold every week at a price of $4 per case. After the tax, 5,000 cases of beer are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax), The amount of the tax on a case of beer is S burden that falls on producers is True per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. O False per case. Of this amount, the burden that falls on consumers is 5 per case, and the
7. Effect of a tax on buyers and sellers The following graph shows the daily market for shoes. Suppose the government institutes a tax of $23.20 per pair. This places a wedge between the price buyers pay and the price sellers receive. PRICE (Dolars per pair) 100 90 0 0 Before Tax After Tax 100 200 Buyers Sellers W 420, 70 Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax Quantity Price Buyers Pay (Pairs of shoes) (Dollars per pair) Price Sellers Receive (Dollars per pair) Supply Derrand 400 500 600 300 000 600 QUANTITY(as of show) Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant ranges using the midpoint method. Enter your results in the following table. Tax Burden (Dollars per pair) Elasticity The burden of the tax falls more heavily on the eastic side of the…
2- The demand curve for a good is q = 100 p/c where c is a constant and c ≥ 0. The supply curve for the good is q=10+p. A quantity tax of t=$10 per unit is imposed on this product. a. By how much will the price of the product rise? b. What are the maximum and minimum possible changes in price? C. What is the producer's share of the tax? d. Find the elasticity of demand at p=10. (Assuming c≥ 0.1).
Question 3
3 3 points The figure below shows the market for snowboards in the state of Colorado. The Colorado state legislature has imposed a sales of tax on each snowboard sold. Assume that the pre-tax price of a snowboard was $50. After the tax, consumers are paying $55 per snowboard while firms are receiving $40 per snowboard. DI Arse 1 The tax burden on households is $30 0000 O $5 $10 $15 $20 Sept O100

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