Question 18When a tax is imposed, consumer surplus and producer surplus are reallocated totax revenue.tax revenue and deadweight loss.deadweight loss.social welfare.government spending on public services.

A tax reduces both consumer and producer surplus.

Answered: Question 18 When a tax is imposed,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consumer or Producer Surplus: Specify which government interventions cause a consumer or producer surplus. Explain how they impact consumer or produce surplus.
of a given activity. c) Economists refer to the revenue collected as a result of a tax as the burden of taxation. Economists refer to other costs imposed on society because of the tax as the burden of taxation.
Oregon Hikes Cigarette Tax by $2 Last November Oregon voters overwhelmingly approved higher taxes on cigarettes and a new tax on e-cigarettes. Effective January 1, 2021, the state tax on a pack of cigarettes jumped from $1.33 to $3.33, the sixth-highest state tax in the nation. That will bring the average retail price up to $8.33 a pack, almost a 32 percent increase. State officials are expecting a tax windfall of $135 million in 2021 from the higher taxes. That assumes Oregonians continue to buy cigarettes at the same rate. Economists warn, however, that smokers reduce cigarette purchases when prices go up. Typically, unit sales decline by 4 percent when cigarette prices go up by 10 percent. The drop in unit sales may be larger in Oregon, as residents will have the option of purchasing smokes from other states, Indian reservations, and online. Source: Media reports of November 2020–February 2021. According to the News Wire, Instructions: Round your responses to one decimal…
A numerical restriction on amount of a good imported is called a Group of answer choices quota. trade tax. tariff. supply tax.
In a market without taxes, consumer surplus is $100, and producer surplus is $200. After the government enacts a tax, consumer surplus is $70, producer surplus is $150, and tax revenue is $20. What is the deadweight loss of the government intervention? Group of answer choices E. $80 A. $20 C. $50 D. $60 B. $3
The vertical distance between points A and B represents a tax in the market. Refer to Figure The amount of tax revenue received by the government is a. $2.50. b. $5. c. $4. d. $9. The vertical distance between points A and B represents a tax in the market. PRICE 210 11 9 8 5 B 3 2 1 Supply Demand H 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITY

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Question 18 When a tax is imposed, consumer surplus and producer surplus are reallocated to tax revenue. tax revenue and deadweight loss. deadweight loss. social welfare. government spending on public services.