To state: The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Question

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Answer 1

Question

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

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Unit VI Assignment Instructions: This assignment has two parts. Answer the questions using the charts. Part 1: Firm 1 High Price Low Price High Price 8,8 0,10 Firm 2 Low Price 10,0 3,3 Question: For the above game, identify the Nash Equilibrium. Does Firm 1 have a dominant strategy? If so, what is it? Does Firm 2 have a dominant strategy? If so, what is it? Your response:

Answer 2

Question

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

Answer 6

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

Answer 7

Chapter 8, Problem 1SPPA

To determine

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Answer 8

Expert Solution & Answer

Answer to Problem 1SPPA

When tax imposed by the government increases, consumer pay most of the tax. If goods are necessary like life-saving medicines buyers buy those products even the price doubles, but if goods are not much necessary the demand will decrease.

The tax increase decreases the quantity of sunglass and sunscreen bought by less than half. A new tax will raise the price of the products and demand will decrease.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

When a new tax is imposed on the prices of the goods, prices generally go high. In Florida, when the government doubles the tax; the buyers will pay the amount of the tax increased. The demand will go down. Sunglasses and sunscreens are not the very necessary things; hence, the demand will go down. They must pay extra money for sunglasses and sunscreens.

Answer 12

Economics Concept Introduction

Perfectly elastic demand:

In perfectly elastic demand, consumers buy more things if the prices fall and when the prices go high the demand decreases.

Answer 13

Ch. 8 - Prob. 1SPPA Ch. 8 - Prob. 2SPPA Ch. 8 - Prob. 3SPPA Ch. 8 - Prob. 4SPPA Ch. 8 - Prob. 5SPPA Ch. 8 - Prob. 6SPPA Ch. 8 - Prob. 7SPPA Ch. 8 - Prob. 8SPPA Ch. 8 - Prob. 9SPPA Ch. 8 - Prob. 10SPPA

To state: The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

To state: The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.

Answer to Problem 1SPPA

Explanation of Solution

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Chapter 8 Solutions

To state:

The effect of demand of sunglasses and sunscreens on buyers and sellers when government doubles the tax from 5.5% to 11% in Florida.