MICROECONOMICS
MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Chapter 1.1, Problem 2Q
To determine

Explain which an individual would sell if $15 is needed. 

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Suppose that initially a seller's "bottom line" asking price for a particular car is equal to $23,000.  However, a new tax is instituted that will tax the seller in the amount of 10% on the sale.  What is the seller's new "bottom line" after factoring in the new tax?
Jeff, a 56 year old professor is subject to a 28% tax rate. He has had a family emergency and must withdraw $5,000 from his IRA to fund it. How much money will he owe the government for this withdrawal?
what the meaning of tax?
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