Q: 5. If elasticity > 1 then governments collect more revenues if they increase taxes
A: The curve is elastic if elasticity is greater than 1.If it is less than 1, it is considered to be…
Q: 29. The government is thinking about increasing the gasoline tax to promote conservation. The tax…
A: The price elasticity of demand (Ed) measures how much the quantity demanded of a good changes in…
Q: xplain how changing the price elasticity of demand from elastic to inelastic affects the consumer's…
A: The percentage change in quantity demanded divided by the percentage change in price is the price…
Q: Tax is a type of revenue receipts True/False
A: The receipt which donot reduce any type of assets nor it creates liability for the government.
Q: Explain the impact of per-unit sales to the buyer and the seller, using a DIAGRAM that illustrates…
A: When sales tax is imposed on the producer, the production cost of the producer rises because for…
Q: After the excise tax is imposed, what is the new equilibrium quantity of sofas? d. What is the…
A: Equilibrium quantity may be defined as the quantity in the economy where the demand of the commodity…
Q: If a tax (paid by consumers) is levied on a good, this would move its demand curve to the left.…
A: A tax is a obligatory monetary cost or levy imposed by using a authorities on individuals,…
Q: Compared to consumers, producers will lose the greater amount of surplus from a tax if supply is…
A: The correct Option is (A) That is the supply is more elastic than the demand
Q: If a tax were placed on fruits, which of the following would be true about the burden of the tax? a.…
A: When we talk about the burden of a tax and how it is distributed between consumers and producers,…
Q: There is equilibrium in the relevant market. The economic effects of taxes can be analysed using…
A: We are going to discuss the tax effect on equilibrium price to answer this question.
Q: Which of the following is the unit tax?A. $0.45B. $0.50C. $1.00D. $1.50E. $2.00
A: The supply curve i.e. Supply and demand curve indicates that the Equilibrium quantity is Q and…
Q: Complete the following table by filling in the quantity sold, the price buyers pay, and the price…
A: Tax is the revenue of the government. Tax is the additional money payment that has to be paid over…
Q: When a good is taxed, the burden of the tax fallsmainly on consumers ifa. the tax is levied on…
A: Tax: A compulsory payment to state revenue levied by the government on worker's income and firm's…
Q: [Basic static analysis of tax] Draw a simple model of the retail market for petrol in Australia.…
A: Retail refers to the selling of products and services to consumers, as opposed to wholesale, which…
Q: The elasticity of demand for maracas is –2.0, and the elasticity of supply is 3.0. How much will the…
A: The elasticity of demand refers to the responsiveness of quantity demanded with respect to a change…
Q: It is a scheme to collect taxes on businesses and industries based on the amount of fossil fuels…
A: A kind of pollution tax that is imposed on businesses and individuals to burn carbon-based fuels…
Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation
A: The tax rate is just the difference of the ST and S curves. As can be seen from the graph, when ST…
Q: Why should businesses take into account tax impacts? O a. Taxes directly affect a business's cash…
A: In a market, firms make business activities to earn some revenue and profit due to which it has to…
Q: Differentiate between Direct and indirect taxes: Type this question in the form of topic paragraph.
A: Answer: The distinction between direct and indirect taxes is formed based on whether the tax burden…
Q: 2. Consider the original market for pizza in Collegetown, illustrated in the accompanying table.…
A: Collegetown officials decide to impose an excise tax of $4 per pizza.
Q: The tax places a wedge between the price buyers pay and the price sellers receive. 50 45 40 ?
A: The government collects taxes from individuals and businesses, or it includes them in the price of a…
Q: Suppose the government wants to raise additional tax revenues with the least disruption to…
A: Tax revenue is the product of tax per unit and quantity sold after tax.
Q: 3. What is the major tax break for homeowners? Why does the tax benefit increase with income?
A: 3) A tax break is a type of tax benefit or a tax concession provided by the government to encourage…
Q: Question 6 The incidence of indirect taxes on suppliers is greatest when: A) supply…
A: "Indirect tax is a tax imposed on products and services before they reach the buyers, who pays the…
Q: Suppose a tax of $20 is placed on televisions. If this market's supply and demand curves' are…
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…
Q: QUESTION 5 A higher amount of a tax imposed by the government will be paid by the buyers. Always.…
A: When talking about incidence of tax, it can be seen that the tax burden depends upon the price…
Q: 32. Suppose the frice elasticity of demand for commodity M is less than one. When a tax is imposed…
A: When the price elasticity of demand is less than one, then the demand for the good is inelastic.
Q: what happens in supply and demand when there is decrease in income tax but also an increase in sales…
A: It can be defined as a form of tax this tax is based on consumption and this tax is imposed by the…
Q: When a tax per unit is placed on the buyer of a good: a the equilibrium price falls and the…
A: The tax could either be imposed on the producer or the buyer. A tax causes both the consumer surplus…
Q: Demand for a product is described by the price-quantity curve p = 225 0.2g and supply is described…
A: We are given: Demand: Pd = 225 - 0.2 q1/2Supply: Ps = 45 + 0.2 q1/2
Q: Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $10.00 and…
A: Information from the given diagram, we have the following Tax = 15 Price Paid by buyers = 58.08…
Q: Case II: Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to…
A: This is a hand drawn diagram. So, there can be little discrepancies. The new equilibrium quantity of…
Q: An increase in government spending would shift the __________________________…
A: Government spending: It means the spending by the public sector on goods and services.
Q: explain four reason why is tax important for a country
A: Tax is the unilateral payment made by the people towards the government for the income earned by the…
Q: A government is considering reducing the amount of taxes it collects from its citizens each year.…
A: The term "taxes" refers to the obligatory fees that the government imposes on its inhabitants. These…
Q: ractice midterm questions eview 10 PLEASE IGNORE Consider the supply and demand diagram…
A: We have to find out the quantity sold after tax
Q: USA todays business section's top story reads "Agriculture Devasted by president's budget;…
A: Supply curve depicts the units of a commodity that all of its producers/ suppliers are willing to…
Q: Instructions: Type in the amount of a tax, and click Supply or Demand to choose whether the tax is…
A: The supply curve shows the quantity of a good or service that producers are willing and able to sell…
Q: ._______ The government spends more than it receives.
A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…
Q: Figure 4-25 Price P3 B C P1 Tax E P2 F H. Quantity Q2 Refer to Figure 4-25 4-25.png. The benefit to…
A: The benefit to the government of imposing the tax is the total revenue collected by the government…
There is an _________ relationship between tax rate and supply of a good
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- 6Explain the impact of per-unit sales to the buyer and the seller, using a DIAGRAM that illustrates the buyer’s share of tax and seller’s share of tax.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)?
- question 6 macroeconpoint(s) possible Submit Next question The graph shows the market for basketballs, when sellers are taxed $6 a ball. Price (dollars per ball) 27 What is the excess burden of the tax? 25- Is the demand for basketballs or the supply of basketballs more inelastic? $+tax 23- 21- 19- Draw a shape that shows the excess burden of the tax on basketballs. 17+16 15 15- AS The excess burden of the tax on basketballs is $ million. 13- D The supply of basketballs is more than the demand for basketballs, and 11-T0 the pays most of the tax. SS 9- O A. inelastic; seller 7- 12 O B. inelastic; buyer 5+ 16 12 Quantity (millions of balls) 8. C. elastic; buyer D. elastic: seller >> Draw only the objects specified in the question. its O Time Remaining: 00:53:44 Next mpleted his course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e MacBook Pro O O O OA tax on the sellers of cheese increases the size of the cheese market. has no effect on the size of the cheese market. may increase, decrease, or have no effect on the size of the cheese market. decreases the size of the cheese market.
- Tax Burden Consider a market with a vertical demand curve. If the government imposes taxes on this market, the tax burden: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Will be split evenly between buyers and sellers. b Will be split unevenly between buyers and sellers. Will fall entirely on buyers. d Will fall entirely on sellers.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 - 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?
- Give typing answer with explanation and conclusion The burden of a sales tax will fall primarily on businesses because sales tax is collected from businesses. true or false?Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.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.
