University of Professional Studies, Accra (UPSA) was founded in 1965 as a private professional business education tuition provider. In 1999, by means of the Institute of Professional Studies Act, (Act 566), it became a tertiary institution with the mandate to provide tertiary and professional education in Accountancy, Management and related disciplines. The school has a student populatio
University of Professional Studies, Accra (UPSA) was founded in 1965 as a private professional business education tuition provider. In 1999, by means of the Institute of Professional Studies Act, (Act 566), it became a tertiary institution with the mandate to provide tertiary and professional education in
Qxd= -175 – 1.5Px + 2.25Py + 0.5I + 0.75A
Where Qxd is demand for Auntie Ama’s food, Px is the price per pack of Auntie Ama’s food, Pyis the price per pack of Home-Made food, I is per capita income of UPSA community, and A is the amount of money spent on advertising by Auntie Ama. In addition, the economist also estimated the supply function for Auntie Ama’s food as:
Qxs = -25 + 3.5Px – 1.75PL + 0.25Tx
Where Qxs is the supply of Auntie Ama.’s food, Px is the price per pack of Auntie Ama’s food, PL is the average price of unskilled labor (¢ per hour), and Tx is the level of Technology. Now suppose the equilibrium values of the variables in the demand and supply functions are given as:
Px= ¢18; Py= ¢20; I=¢400; A=¢20; PL=¢10; Tx=¢30 and Suppose a lump sum tax of ¢4 is imposed by the Management of UPSA
- What is the government tax revenue?
- How would the agents share the tax per unit?
- Suppose the government introduces a
price ceiling of GH¢20 per unit, what will be thedeadweight loss to the - What will be the cost to the government if
price floor of GH¢30 is
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