Both a payroll tax and an excise tax on alcoholraise revenue and, respectively, shrink the marketsfor labor and alcohol. Although both have somefunctions in common, governments may havedifferent goals when levying them. What goalsdo you think motivate a payroll tax? What goalsmotivate an alcohol tax?

Q: The burden of a tax and the benefit of a subsidy falls mainly on consumers: O A. if the quantity…

A: Elasticity is the responsiveness of change in quantity due to change in price.

Q: The equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on…

A: The equilibrium price and quantity are obtained by putting quantity demand equal to quantity…

Q: 6. One rationale for imposing taxes on alcohol con- sumption is that people who drink alcohol impose…

A: The markets are the place where the buyers, and sellers of various goods, and services meet with…

Q: Time left U:36:11 When the price elasticity of demand is low and the price elasticity of supply is…

A: Share of burden of tax depends on relative elasticities of demand and supply. Higher the elasticity,…

Q: The demand for cigarettes, which create negativeexternalities through secondhand smoke, is…

A: The demand for inelastic goods changes slightly with response to the price changes because firstly…

Q: Can someone please help me to fill in the blanks for the above questions in the picture?

A: Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question.…

Q: Consider a labor market in which workers are paid the minimum wage. When will it matter for tax…

A: A payroll tax is a financial charge levied on employers or employees by the state, calculated as a…

Q: The idea that taxes should be imposed to raise revenues but not change incentives is called a. the…

A: In a market, government imposes taxes in different ways according to the requirements of the market.

Q: Suppose that the government imposes a tax onheating oil.a. Would the deadweight loss from this tax…

A: When the government impose a tax on the commodity then the price of that commodity rises.

Q: In an effort to reduce alcohol consumption in Jamaica, the government of Jamaica (GOJ) is…

A: GIVEN DATA     In an effort to reduce alcohol consumption in Jamaica, the government of Jamaica…

Q: Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be…

A: Answer-

Q: Eggs have a supply curve that is linear and upwardslopingand a demand curve that is linear…

A: Supply and demand is an economic model of value determination in a very market in economic science.…

Q: What determines how the burden of a tax is dividedbetween buyers and sellers? Why?

A: The tax incidence depends on the price elasticity of supply and demand. Most burden falls on the…

Q: Excise taxes are popular sources of revenue for governments because a) they are easy to understand.…

A: When talking about excise tax, it is the form of taxes that is imposed on the goods or service to…

Q: 15 12 D2 D1 100 101 onsider the supply and demand graph above showing a shift in demand from D1 to…

A: After considering the above mentioned supply and demand graph showing a shift in demand from D1 to…

Q: If the government is considering implementing a tax on lumber used in the production of new houses.…

A: A deadweight loss is considered to be a cost to the society which is being created by the…

Q: Suppose the government removes a tax on buyers ofa good and levies a tax of the same size on sellers…

A: Tax is always a subject to the consumer, it means if tax is levied on the consumer then it directly…

Q: Suppose the market demand and sup Demand P400-240 Supply: P- 160 - B0 Given these demand and supply…

A: The market demand and supply curves are given below Demand: P = 400 - 24QD Supply: P = 160 + 8QS…

Q: The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz…

A: Equilibrium is essential for achieving both a fair and productive economy. When a system is at its…

Q: Deadweight loss is defined as O a) the dollar cost of a tax per unit of sale. O b) the cost to…

A: In perfectly competitive market, there is no deadweight loss. Market structures like monopoly and…

Q: Suppose demand for good X is given by QD=900- 1/2P where p is the price and QD the quantity demanded…

A: Given QD = 900- 1/2P QD = 900- 0.5P QS = 1/4P QS = 0.25P At equilibrium  QD = QS 900- 0.5P = 0.25P…

Q: Which area(s) represent the amount of consumer surplus lost due to the tax? O a) B-C O b) B+F O)A c)…

A: Consumer surplus refers to the ads abound the price and below the demand curve.

Q: Calculate the percentage of the tax borne by the demander and supplier in each of the following…

A: The fraction of tax borne by the demanded = ES/(ED+ES) Similarly, for supplier = ED/(ED+ES) A) ED =…

Q: New York State imposes some of the highest "sin tax" rates in the country.  When I say "sin tax",…

A: Excise tax refers to a legislated taxed on specific goods and services at purchase such as liquor,…

Q: In a supply and demand model, excise taxes on goods and services cause deadweight loss because: O…

A: A direct tax is one that is paid directly to the institution that imposed it. Individual taxpayers,…

Q: Consider the market for minivans. Suppose the "existing policy" requires that when buying (or she)…

A: The existing tax on transfer of the product was $1000. Now the government has changed the policy…

Q: The demand for pastries slopes downward and the supply of pastries slopes upward. Suppose that the…

A: Elasticity measures how responsive is quantity to changes in price level.

Q: When the price elasticity of demand is low and the price elasticity of supply is high, the burden of…

A: Answer: option c (buyers of the product) Explanation: The burden of the tax falls more on buyers if…

Q: The incidence of a tax is determined by which side of the market is less sensitive to a change in…

A: Tax incidence refers to the split of a tax burden across stakeholders such as buyers and sellers,…

Q: The consumers' burden associated with an excise tax will be largest when demand is OA. vertical. B.…

A: The consumer's burden associated with an excise tax will be the largest when demand is vertical.

Q: Deadweight loss is defined as O a) the cost to society created by distortions in the market. O b)…

A: The Deadweight loss (DWL) is created by market inefficiencies.

Q: The figure below illustrates the effect of an excise tax (per unit tax) imposed on sellers (S means…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Which of the following is an example of a Tax Deduction? O Cothing Expenses Child Dependency…

A: Tax deduction refers to claims made to reduce your taxable income, arising from various investments…

Q: . Now a tax of 1.5$ per unit is imposed on the manufacturer which he puts entirely on the price of…

A: The equilibrium price of a commodity is the price at which the quantity demanded of the commodity…

Q: 43. A tax paid by buyers shifts the supply curve, while a tax paid by sellers shifts the demand…

A: At a marketplace, when tax is imposed on the market participants, it will lead to affect the market…

Q: Suppose the California legislature passed a sweeping law to lower the number of regulations for…

A: In this case sweeping law will empowers California government to make necessary law and give proper…

Q: (d) Suppose the government wishes to help out consumers impacted by this tax by subsidizing coffee…

A: Tax refers to the compulsory charges levied by the government on its citizen and the citizen. The…

Q: Figure 18-2 shows the widget market before and after an excise tax is imposed. What percentage of…

A: The price paid by the consumer before tax imposition is $100 (where the demand curve is equal to…

Q: Q. Assume that the demand for whiskey is Qd=9-0.5P and the supply of whiskey is Qs=P. a. Calculate…

A: Given:

Q: Price Quanity In the graph shown, the price that will be paid after the tax is Select one: O a. P1.…

A: Meaning of Tax Imposition: The term tax imposition or the tax hike refers to the situation under…

Q: In what situation would producer surplus be positiv O When the price the producer is willing to…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: 5. Calculating tax incidence Suppose that the U.S. government decides to charge cola consumers a…

A: In a market, when a tax is imposed on a specific good, a tax amount per unit can be considered as…

Q: Consider the supply and demand graph above showing a shift in demand from D1 to D2. Which of the…

A: In the given graph, it can be seen that demand curve shifts to the right from D1 to D2.

Q: Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is…

A: Per unit tax as well as percentage tax if collected from sellers shifts the supply curve upward,…

Q: The government is worried about high rates of cigarette smoking and so it's considering implementing…

A: In an economy, when demand for a cigarette is very inelastic and the supply of cigarettes is…

Q: PDemand QDemand PSupply QSupply $10 0 $1 2 $9 3 $2 4 $8 6 $3 6 $7 9 $4 8 $6 12 $5 10 $5 15 $6 12 $4…

A: Answer