Q: Question 2
A: The economic burden of a tax is also known as the incidence of tax. It is an important topic in the…
Q: (V) Total surplus after tax Answer:
A: The total surplus in a market is a proportion of the all out prosperity of all members in a market.…
Q: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…
A: Consumer surplus refer to the difference between the maximum willing to accept price and actually…
Q: Top One Enterprise Ltd earns huge profit this year and needs to pay profit tax to the government.…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Suppose the market for grass seed can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p If…
A: Given Information Quantity Demanded Qd = 100 - 2PQuantity supply Qs = 3P
Q: A) The town of Dimmsdale is a popular tourist destination. The problem is, the tourists are not…
A: Market demand : Qd = 700 - 5p => p = 140 - Q/5 Marginal Cost = 50 Optimal condition for number…
Q: hich of the following statements is correct?
A: Consumer surplus is the area between the demand curve (below) and above the price. Producer surplus…
Q: S+ tat PE Pi [7+TAX -DE Ds .Q Q Which demand schedule results in a higher tax burden to the consumer…
A: Given
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: S8.Compute:(a) Market Gains (MG) before and after the tax;(b) Governmental Revenue (GR);(c) Economic…
A: deadweight loss is a cost to society created by market inefficiency, which occurs when supply and…
Q: A) The town of Dimmsdale is a popular tourist destination. The problem is, the tourists are not…
A: Market demand : Qd = 700 - 5p => p = 140 - Q/5 Marginal Cost = 50 Optimal condition for number…
Q: A religious group engaged in the sale of bibles and other religious articles was required to pay…
A: The imposition of tax is mostly valid except in some counties or states where the law states…
Q: How do you give an example of the sale price of an item and the total cost including sales tax if…
A: In a tax system, the tax rate is the ratio at which a business or person is taxed. There are several…
Q: Q. I In a hypothetical economy, only the following transactions take place. firm M sells all of its…
A: Given, Firm M sell product of worth to N = Sale of M Rs. 12,000 crores So, Firm N buys a product of…
Q: Suppose that initially a seller's "bottom line" asking price for a particular car is equal to…
A: Bottom line price is the price which is lowest the seller can charge its customer without incurring…
Q: P (dollars) 45 Sgub 28 25 21 10 Q (units) 200 240 Consider the following market. If the government…
A: When government imposes subsidy, which means that government has bear the cost of goods by the…
Q: A product has demand given by Q = 30 – 2P, where P here means buyer price of course. Supply is given…
A: Here, we see that the price that the sellers are willing to sell is at P. At each level of price,…
Q: Questión Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS…
A: Answer 3 a is 72
Q: QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the…
A: Answer: Given: Quantity demanded and quantity supplied functions: QD=240-5PQS=P Calculation:…
Q: Suppose that your state raises its sales taxfrom 5 percent to 6 percent. The state…
A: Given: The sales tax increases from 5% to 6% This increase is an increase of 20% itself…
Q: 21. Maximum revenue and profit. A company manufactures and sells x television sets per month. The…
A: Answer: Given, Cost function: Cx=72,000+60x Demand function: p=200-x30 0≤x≤6,000 (A). Let us…
Q: Given: QD = 160 -5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on the buyer.…
A: ANS Given: QD = 160 -5P QS = -11 + 4P At equilibrium QD=QS ∴160-5P=-11+4P⇒9P=171⇒P=1719=19…
Q: Explain the relationship between the first 5 graphs and the Laffer Curve (also shown). Note: Please…
A: The Laffer Curve depends on the economic thought that individuals will change their conduct even…
Q: answer questions 2 and 3
A: Subsidies: A subsidy is a measure of cash given straightforwardly to firms by the public authority…
Q: 3) Equilibrium price and quantities (Qs and Qd) after Rs.6 per unit tax on producer The equations…
A: Given, P=7-Q2P = 76+Q Tax on producer = Rs 6 per unit
Q: Price S+ tax $12 10 4500 5000 Quantity Consider the impact of a tax on sellers, shown in this…
A: Government revenue is money received by a government from taxes and non-tax sources to enable it to…
Q: Explain the changing balance and tax sharing on the graph when a $ 5 tax is applied to a low product…
A:
Q: Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the…
A: Consumer Surplus is the difference between what consumers are willing and able to pay for a good and…
Q: Tax Supply Supply 32 22
A: Equilibrium is achieved at a point where demand curve intersects the supply curve.
Q: Given the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is…
A: For demand curve when there is equilibrium without tax:
Q: Opponents of increasing the tax on gasolineargue that the big oil companies just pass thetax along…
A: Meaning of Tax Imposition: The term tax imposition or the tax hike refers to the situation under…
Q: Last month The Sweet Tooth Candy Shops had total sales, including sales tax, of $64,889. The stores…
A: Given information: Total Sales (including sales tax) = $64,889 Rates of sales tax: 7%, 1%, 2%
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: In your current job, you earn $55,000. You take the standard deduction of $12,200. You have an offer…
A: Answer; Option (b) $1,100 is correct
Q: Q1 Explain with the help of a figure for a labor market what we mean by the employees paying part…
A: Ques 1) The labor market is in equilibrium when supply equals demand; E* workers are employed at a…
Q: Assume supply of a rice: QS = 1800 + 240P, 1981 Demand for rice: QD = 3550 - 266P. What is the…
A: The market clearing price is also known as equilibrium price. The market clearing price is the price…
Q: QD = 160 -5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on the buyer.…
A: Equilibrium is achieved where quantity supplied equals quantity demanded
Q: 6. The government decides to place a $6 unit tax on a product. The following elasticities are known:…
A: Effect of tax vary on consumer and seller , so here we calculate the price paid by the demanders…
Q: d) If a per unit sales tax is imposed on this market, who will pay a larger share of the tax and…
A: Given information are Q=1600-300P ... (1) Supply: Q=1400+700P ... (2)
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: 0. Marta purchased a sweater for $15.67, a pair of ocks for $2.13, and a bracelet for $6.78. For all…
A: The sale tax is imposed on the sale of commodity. It raises the price of commodity.
Q: price 7 S after tx 65 55 S 4.5 35 3 25 15 1 D 05 10 15 20 25 30 35 40 45 50 55 60 65 70 quantity…
A: The price paid by buyers is found at the intersection of demand and supply curves. Given the supply…
Q: Question 3
A: When per unit tax $12 is imposed, the quantity produced and consumed will reduce as 800.
Q: Qs= 30p-60 Qd= 105-3p The government imposes a maximum price of 4.8. What will be the Consumer…
A: What Is the Loss of Deadweight? Deadweight loss is the loss of economic efficiency due to…
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- based on the attached equation find:(a) Equilbrium price before the tax(b) Equilbrium quanity before taxSuppose that the government imposes a tax onheating oil.a. Would the deadweight loss from this tax likely begreater in the first year after it is imposed or in thefifth year? Explain.b. Would the revenue collected from this tax likely begreater in the first year after it is imposed or in thefifth year? Explain.Whichofthefollowingstatementsis(are)correct? (x) A payroll tax is a tax on the wages that a firm pays its workers and in the United States the payroll tax is also referred to as a social insurance tax. (y) The payroll tax differs from the individual income tax in the U.S. because the payroll tax is primarily earmarked to pay for Social Security and Medicare. (z) Taxes on specific goods such as cigarettes, gasoline, alcoholic beverages and tires are called excise taxes. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (x) only
- Mustafa earns 72,000 TRY in a year. Assume that he has 8,000 TRY tax exemption. The following figure shows the marginal tax rates for different income intervals.a) Calculate total tax payments of Mustafa.b) Calculate average tax rate for Mustafa.Suppose the Punjab government requires Coke drinkers to pay a $2 tax on each case of Cokepurchased.a. Draw a supply-and-demand diagram of the market for Coke without thetax. Show the price paid by consumers, the price received by producers,and the quantity of Coke sold. What is the difference between the pricepaid by consumers and the price received by producers?b. Now draw a supply-and-demand diagram for the Coke market with thetax. Show the price paid by consumers, the price received by producers,and the quantity of Coke sold. What is the difference between the pricepaid by consumers and the price received by producers? Has the quantityof Coke sold increased or decreased?Let Q=2P be supply and Q=20-2P be demand. With a tax of 2 the price received by the producer is........ With this question, I know the price received by tge consumer is 6 becuase I just plug the new equilibrium quantity into the demand equation. I reworked all the problems so that P(supply)=1/2Q and P(demand)=10-1/2Q and P(tax)=1/2Q+2. My only question is do I plug the new equilibirum quantity into the supply equaiton with or wihtout the tax? (P=1/2Q or P=1/2Q+2)? I might just be overthinking it, but I just want to double check becuase so I can get a solid understanding of this.
- Q^d= 9.5 - 2p Q^s= 0.6p Tax. Suppose that the government imposes a tax equal to T = 0.50 which buyers must pay for every donut they purchase. (a) How does this tax change the supply and/or demand curve for donuts? (b) Solve for the new equilibrium price and quantity of donuts. Give the price paid by the buyer and the price received by the seller. (c) Draw a single supply and demand diagram that compares the equilibrium with and without the tax. Be sure to indicate the equilibrium quantity of donuts sold as well as the price paid by buyers and the price received by sellers in each case. On the same diagram, indicate the areas which represent consumer and producer surplus, tax revenue and the deadweight loss arising from this tax. (d) Calculate the amount of producer and consumer surplus at this new equilibrium price and quantity, as well as the amount of tax revenue and the deadweight loss. (e) Is the total surplus higher, lower, or the same as in question one? Give an…Tax revenue when tax is $80 Tax revenue when tax is $40 Tax revenue when tax is $120 The graph shows the demand and supply of bungee jumps in Xtremeland. The government decides to impose an excise tax on bungee jumps to help pay for the high number of back and neck injuries.A challenger presidential candidate vows to cutentitlement spending by 20 percent in the first fewweeks that he is in office. Why is it unlikely thecandidate could achieve this reduction?
- Suppose that a market is described by the following supply and demand equations:Qs=2PQD=300-Pa.Solve for the equilibrium price and the equilibrium quantity.b.Solve that a tax of T is placed on buyers,so the new denad equation is QD=300-(P+T).Solve for the new equilibrium.What happens to the price receive by sellers,the price paid by buyers.and the quantity sold?c.Tax revenue is TxQ.Use your answer from part(b)to solve for tax revenue as a function of T.Graph this relationship for T between 0 and 300.d.The dead weight loss of a tax is the area of a triangle between supply and demand curves.Recalling that the area of the triangle is 1/2xbasexheight,solve for the dead weight loss as afunction of T.Graph this relationship for T between 0 and 300.e.The government now levies a tax of $200per unit on this good.Is this a good policy?Why or why not?Can you propose a better policy?Identify the effect of increase in tax rates on either demand or supply curve and the equilibruim interst rates.If the government imposes a unit sales tax (i.e., $ tax per unit sold) on a product, which one, “demand or supply” will shift? Increase or decrease? Will the new tax cause “disequilibrium”? Please state clearly about the shift (leftward or rightward) and the equilibrium price and quantity change. No graph is required.