Cars P. Q Suppose that your city puts an excise tax on cars but collects the tax from car buyers rather than from car sellers. Each buyer has to pay the tax when the car is registered. What would the likely effect be in the market for cars shown above?

Q: Q2. Suppose the government wants to reduce the consumption of alcohol in the market by introducing a…

A: Given; There are two scenarios of alcohol consumers in the market:- i) A demand curve for additive…

Q: The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will…

A: Elastic supply means when price increases by some percentage, quantity supply increases by more than…

Q: Zara is a utility maximizer interested in two goods, X and Y. Her utility function is given by…

A: Answer - Given in the question - U = min(2x,4y) Income  = 712  Price of good "X" = 4  Price of good…

Q: 15 Price $ 10 5 10 Quantity (gallons)

A: In a market, government receives a tax revenue equals to the multiplication of tax rate and quantity…

Q: The demand and supply equations for a product are: Qd= 300 – 6P and Qs= -40 + 6P. Determine the…

A: Market equilibrium is attained where the quantity demanded and the quantity supplied are equal.

Q: The Chicago City Council wants to encourage Chicagoans to exercise. So, they have eliminated all…

A: Taxes are the charges or the fees which are lived on the individuals or the corporations. It is…

Q: At the current market equilibrium, the price elasticity of supply for a certain good is much lower…

A: Given: Price elasticity of supply is lower than price elasticity of demand . Government imposes a…

Q: The demand and supply of some good are as follows:                Qd = 100 - P                Qs =…

A: Eq price and quantity are found by the intersection of dd(demand) and ss(supply) in the market.

Q: If buyers are required to pay a tax on top of the price, buyers' willingness to pay will:…

A: The demand is not only the willingness to purchase a commodity by an individual, but as well as the…

Q: Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the…

A: The tax incidence analysis consists of deciding who is the economic entity that bears the expense of…

Q: The demand and supply equations for a product are: Q= 300 — 6P and Q.= -40 + 6P. Determine the…

A:

Q: If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?

A:

Q: If the government wants to use a Pigouvian tax to alleviate the problem of obesity contagion, what…

A: We are going to discuss ways to minimize negative externalities.

Q: If a tax is imposed on the buyer, the amount the buyer pays will always increase by the amount of…

A: The incidence of tax depends upon the elasticity of demand and supply. When the supply of the good…

Q: Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the…

A: This can be explained by a graph below:

Q: Is it true, as many people claim, that taxes assessed on producers are passed along to consumers?…

A: Taxes are obligatory contributions levied by a government agency on people or companies. Taxation…

Q: Why type of good are the best choice for levying or applying an excise tax? A. Goods that are…

A: Excise Tax: The excise tax is a type of indirect tax that is imposed on the sale of the commodity.…

Q: Suppose the supply curve for cars is more elastic than the demand curve for cars.  If the government…

A: Tax incidence can be shifted only through sale and purchase transaction.  Share of tax borne by the…

Q: if you were told that the demand and the supply of a good are given by Qd= 25-0.25P and Qs=-10+P,…

A: Given: Qd= 25-0.25P Or, P=100-4Qd Qs=-10+P Or, P=10+Qs Equilibrium Quantity: demand=Suppky: 100-4Qd…

Q: Congress and the president decide that the United States should reduce air pollution by reducing its…

A: The decision made by congress and president of the United States to reduce air pollution by taxing…

Q: Figure 4-25 Price P3 B C P1 Tax E P2 F H. Quantity Q2 Refer to Figure 4-25 4-25.png. The benefit to…

A: The benefit to the government of imposing the tax is the total revenue collected by the government…

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

A:

Q: why do comsumers pay the tax on goods if the elasticity of demand is less than the elasticty of…

A: Demand is said to be inelastic when the change in price leads a change in quantity demanded in…

Q: Suppose producers bear most of the burden of a specific tax of 20 cents on staplers. Which ONE…

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

Q: The market for widgets can be described by the following equations: Demand: P = 10 -Q Supply: P = Q-…

A: Tax incidence signifies how tax burden is distributed between suppliers and demanders.. In other…

Q: A government intervenes in a market and as a result the demand curve shifts to the right. Which…

A: The government makes payments to encourage the production of goods and services that it sees as…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: It is given that elasticity of demand= -0.8, and elasticity of supply=0.7 is inelastic in nature.…

Q: Suppose government impose a tax of 1 dollar per bottle on sellers of industrial detergent. Explain 3…

A: The tax is a compulsory payment or a levy which is imposed by the government on providing various…

Q: Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If…

A: The burden of a tax is generally shared by the buyers and sellers in a market.  In other words, the…

Q: Suppose the California legislature passed a sweeping law to DECREASING the parking requirements and…

A: 1.When the government decided to reduce the parking requirements for the housing along with setback…

Q: The equilibrium price of a good is $9. The demand for this good is more elastic than the supply.…

A: Elasticity of demand depicts how much consumer responds with the change in price level.

Q: Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a…

A: A 10,000 percent tax on bullet will not likely to generate a lot of revenue.  The reason is as the…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: Tax burden of buyers = Es / (Es - Ed), where Ed: Elasticity of demand Es: Elasticity of supply

Q: Why is tax necessary for the government? Substantiate your answer in 2 paragraphs

A: A country is controlled by it's government

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: a) The burden would be shared more by the group which is less elastic. This is because they cannot…

Q: Suppose the price elasticity of demand for smartphones is 0.5 (absolute value), while the price…

A: PED (price elasticity of demand) = 0.5PES (price elasticity of supply) = 1.9Because PES > PED, it…

Q: Suppose that in the market for ice cream, with a $5 per ice cream cone tax, the producer effective…

A: When the tax is imposed on the good, the quantity exchanged in the market decreases.

Q: Suppose that the Australian government imposes a sales tax on a product and both buyers and sellers…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: How a Pigovian tax affects consumers? Please support your explanation based on a figure.

A: The Pigovian tax's aim is to reallocate the expense of the negative externality straight to the…

Q: Richard and Henry like soda drinks. Henry's demand for soda is: P=10-Q; the demand for Richard is…

A: Without tax Henry Richard Demand for soda=P=10-Q supply for soda=P=1 Optimum profit is…

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: Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080 - 7P…

A: Price elasticity of supply depicts how much producer responds with the change in the price level.

Q: QUESTION 1. With the help of a numerical example, explain why California and Maine tax cannabis by…

A: 1) The reason behind California and Maine tax cannabis by weight rather than by price is the…

Q: For what kind of preferences will the consumer be just as well-off facing a quantity tax as an…

A: Consumer well-off facing a quantity tax in the case of the kinked demand curve for the complement…

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: Suppose the market for a good is described by the following equations: P = 20 + 0.25Q and P = 200 -…

A: Producer surplus after tax is the area above the minimum acceptable price and below price received…