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14) A tax that falls in percentage of income as income increases is a
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- In the recent budget announcement, federal minister announced the federal excise duty on mobile phone calls that are longer than three minutes has been set at Rs1 per call, Rs0.1 on every SMS and Rs5 on every GB of internet data. However, the proposed tax was not approved in the cabinet meeting later on. Now suppose if the following tax would have been approved. Use supply-and-demand framework/diagram of the market for internet and voice call packages without the tax. Assume hypothetical values and show the price paid by consumers, the price received by producers, and the quantity of such bundles. What is the difference between the price paid by consumers and the price received by producers? Now draw a supply-and-demand diagram for the internet and voice bundles market with the tax. Show the price paid by consumers, the price received by producers, and the quantity of bundles sold. What is the difference between the price paid by consumers and the price received by…22Price MC, =S Ds D Quantity Figure 10 Demand and supply curves Towards the right of Figure 10 are two circular red markers with a line between them that you can use to draw a MCp – subsidy curve on Figure 10. You can move the markers with the mouse by clicking on them and dragging. Alternatively, you can tab to each marker and then use the keyboard arrow keys. A report from Cycling England has suggested that a £70m investment in cycling each year could save the government £520m per year. The savings result from the positive benefits of increased cycling - lower carbon dioxide emissions and lower NHS costs as we become healthier. These positive consumption externalities are shown in the diagram below by the demand curve Ds. This is the level of demand society would prefer at each price once the externalities are recognised. The government decides to subsidise the production of bikes to encourage consumption of cycling. Move the markers to drag the line to the correct place on the diagram…
- 4. Application: Demand elasticity and agriculture The following graph Illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose new gathering technology is invented, allowing growers to produce more crops using the same amount of resources. Show the affact this shock has on the market for almonds by shifting the demand curva, supply curva, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE(Dollars per loro 24 0 A QUANTITY (Thousands oftons) Demand Supply 12 Total Revenue (Thousands of Dollars) Demand Supply (?) Several growers are happy with this advancement in technology because now they can sell more crops, which they belleve will lead to increases in revenue. Using elasticities, you will be able to determine whether this price change will lead to a…Suppose the Canadian government has decided to place an excise tax of $20 per tire on producers of automobile tires Excise taxes are also called sales or commodity taxes 150 Previously, there was no excise tax on automobile tires. As 140 a result of the excise tax, producers of tires, such as 130 Bridgestone and Michelin, are going to alter their tire prices The graph illustrates the demand and supply curves for 120 Supply Demand 110 100 automobile tires before the excise tax. 90 Please shift the appropriate curve or curves on the graph to demonstrate the new equilibrium 80 70 What is the price consumers pay for a tire post tax? Round 60 to the nearest 10 50 0 2 4 5 6 7 8 9 10 Quantity of tires 100 price paid by consumers: Price per tire coHand written solutions are strictly prohibited
- macro question 6Which of the following statements best illustrates the concept of derived demand? An increase in the price of gasoline leads to an increase in the demand for small cars. 111 An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories. O An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.Interpret what an increase in demand and an increase in supply mean. Discuss the causes of an increase in demand and an increase in supply. How are increases in demand and supply expressed graphically?
- o Suppose the Canadian government has decided to place an excise tax of $20 per tire on producers of automobile tires. Excise taxes are also called sales or commodity taxes. Previously, there was no excise tax on automobile tires. As a result of the excise tax, producers of tires, such as Bridgestone and Michelin, are going to alter their tire prices. The graph illustrates the demand and supply curves for automobile tires before the excise tax. Please shift the appropriate curve or curves on the graph to demonstrate the impact of the new tax. What is the price consumers pay for a tire post tax? Round to the nearest 10. price paid by consumers: $ What is the price producers receive for a tire net of taxes? Round to the nearest 10. Price 150 140 130 120 110 100 90 80 70 60 50 O 1 2 3 01 4 5 Quantity 6 Supply Demad 7 8 9 10using economic concepts , discuss the impact of the following events on the equilibriumprice level and output:in an effort to fight economic recession Australian government decides to increase spendingAnswer on question 2 part 4.