An increase in government spending would shift the __________________________ __________________________ __________________________ to the right.
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An increase in government spending would shift the __________________________ __________________________ __________________________ to the right.
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- 2. When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500 tickets. One day, an airline tax is levied equal to $10.00 and output falls to 37,000 tickets. Assume that air travelers end up paying 75% of the tax. Total expenditures or sales of air travel will be____. Total revenues generated by airlines will be _____ Total tax revenue generated by the government will be ____ Total taxes paid by air travelers will be ____ Total taxes paid by airlines will be ____ Calculate the price elasticity of demand and & interpret coefficient. Use the general formula, not the mid point formula Calculate the price elasticity of supply and interpret coefficient. Use the general formula, not the mid point formula. How do total sales in the airline market before and after the tax support your answer in (n) and/or (o)?185.Suppose the government wanted to impose a tax and wanted the entire burden of the tax to fall on the sellers. What would have to be true of a market for this to be possible? (A) The sellers would have to have a perfectly inelastic supply curve, and the buyers would have to have a perfectly inelastic demand curve. (B) The buyers would have to have a perfectly elastic demand curve, and the sellers must not have a perfectly elastic supply curve. (C) The sellers would have to have a perfectly inelastic supply curve, and buyers must not have a perfectly inelastic demand curve. (D) The buyers would have to have a perfectly inelastic demand curve, and the sellers would need not to have perfectly elastic supply curve. (E) Neither buyer nor seller should have perfectly elastic or perfectly inelastic curves.Question 3 please
- Question 3 - Taxation Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. (a) Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers, and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers? (b) Now draw a supply-and-demand diagram for the beer market with the tax. Show the price paid by consumers, the price received by producers, and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers? Has the quantity of beer sold increased or decreased? (c) Can you identify any government revenues? (d) Is there any inefficiency, and if so, can you define it and label it on the graph?ook Refer to the following table for Waxwania: Government Expenditures, G $ 170 Tax Revenues, T Real GDP $ 90 $ 450 170 110 550 170 130 650 170 150 750 170 170 850 nt ences Instructions: Enter your answers as a whole number. a. What is the marginal tax rate in Waxwania? percent b. What is the average tax rate? percent c. Which of the following describes the tax system: proportional, progressive, or regressive? (Click to select)1. Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. a. Can you identify any government revenues?
- The government raises taxes on cigarettes from $1 per to $2 per pack. Prior to the tax increase, 5 million packs were sold each year. The new equilibrium quantity is 4 million packs. a. If demand is elastic, an increase in the level of a tax will _______ tax revenue. - increase, decrease or not change. b. All other things equal, a tax on ________ (hamburgers, breakfast cereal, luxury watches, or cigerattes) would be likely to raise the greatest revenue because demand is most _________ (elastic, inelastic or unit elastic). c. All other things equal, a tax on ________ (hamburgers, breakfast cereal, luxury watches, or cigerattes) would cause the greatest deadweight loss.18. Answer all parts (a)-(c) of this question (a) Explain the concepts of consumers' surplus and producers' surplus. Why in a competitive market social welfare is the highest at the equilibrium? Use a diagram to illustrate your answer. (b) Explain the main effects of the introduction of a specific tax on the competitive market equilibrium. How these effects depend on the elasticity of demand and supply? Use a diagram to your answer. (c) Since specific taxes introduce a possible welfare loss in a free market, would you argue against the use of this government policy? Explain.Suppose the government wants to maximize tax revenue. Some policymakers suggest taxingcigarettes, and some suggest taxing rich foods, like burgers and pizza. What would you recommend?Why? Defend your stance. give graph if needed
- The table shows the market for tulips. Price (dollars per bunch) Quantity demanded Quantity supplied (bunches per week) 10 100 40 12 90 60 14 80 80 16 70 100 18 60 120 If tulips are taxed at $6 a bunch, what is the tax revenue? Tax revenue is $______ a week.Q)Economics If the tax elasticity of supply is 0.16, by how much will the quantity supplied increase when the marginal tax rate decreases from 40 to 36 percent?The equilibrium price of a good is $30. Supply of this good is more elastic than demand. 5uppase the government introduces a tax on the good. in this case, the price receved by producers is $24, and the price paid by consumers is 1.6 times more.Calculate the tax cost per good for the group bearing most of the tax burden if necessary, round any intermediate calculations and your final answer to two decimal places. $______
