Due to imposing a sugar tax, who would likely suffer a greater share of the deadweight loss – the consumer or producer? Explain

Q: Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 20 million…

A: Tax refers to the compulsory payment that imposed by the government on consumer, individual people…

Q: Give an example of a product that has inelastic demand and elastic supply in the market to price. If…

A: An inelastic demand is defined as one where a change in price does not significantly impact demand…

Q: 25. Answer the following tax related questions. a. Consider a (per unit) tax on two different goods,…

A: In a market where the supply curve is inelastic, the DWL is smaller than the market where the supply…

Q: The tax on cigarettes in New York City is one of the highest in the nation—$5.85 per pack. What are…

A: Tax is a mandatory unilateral or one way payment made by the public towards the government in the…

Q: The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic.…

A: An excise tax is a tax on each unit of a commodity. Consumers and producers share the burden or…

Q: Seeing a golden opportunity to increase its revenue, assume the City of Boston has decided to levy a…

A: When a tax is imposed on every unit of quantity sold, then the tax burden is shared by the seller…

Q: Suppose demand is given by the equation Pp = 100 – 2Qp and supply is given by the equation PS = 50 +…

A: Equilibrium quantityPD=PS100-2Q=50+3Q100-50=3Q+2Q5Q=50Q=505Q=10

Q: what are the ultimate effects to society of shortfalls of tax collection

A: The shortfalls of tax collection lead to a decrease in public spending which leads to a decrease in…

Q: Now draw a supply-and-demand diagram for the liquor market with the tax. Show the price paid by…

A: Answer -

Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the change…

A: The consumer surplus is the area below the demand curve and above the price. Producer Surplus is the…

Q: Assume that the demand for coal is more elastic than the supply. A tax on coal will    a. increase…

A: A tax could be a mandatory fee or financial charge levied by any government on a personal or a…

Q: A tax on demand shifts and the burden of the tax falls on the demand curve only; on demanders only.…

A: A tax on demand implies a tax on goods which leads to a fall in the demand and supply so it shifts…

Q: Which of the following statements are correct? The statutory or legal incidence of a tax determines…

A: The tax can be divided into two categories such as per unit tax and lumpsum tax. Any tax results in…

Q: The government is considering levying a tax of $60 per unit on suppliers of either concert tickets…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: Do you think profit could be maintained if the tax burden were simply passed on to the consumers in…

A: The division of a tax burden across stakeholders, such as buyers and sellers, and producers and…

Q: The demand for rutabagas is Q= 2,000 – 300P and the supply of rutabagas is Q =-100 + 100P. (10') Who…

A: Given that the demand for rutabagas is Q=2,000−300P and The supply of rutabagas is Q =−100+100P $2…

Q: Suppose the price elasticity of demand for luxury boats is zero. Explain, with the use of a diagram,…

A: Price elasticity: It refers to the change in the price of goods and services. The more change in…

Q: Suppose that the government enacts a tax on retail sales of road salt, which homeowners and…

A: When a tax is imposed, the burden is shared by the producers and consumers both. The magnitude of…

Q: With the use of diagrams and by including consumer and producer surplus in your answer, explain…

A: A tax incidence is define as the division of a tax burden which has to be shared in between the…

Q: Consider the market for junk food. Illustrate and explain the effects on price, quantity and the…

A: The market for junk food is represented in the below steps.

Q: Suppose demand for good X is less elastic than demand for good Y. Suppose the government wants to…

A: The correct option is  A. Good X  Since the demand for X is less elastic.

Q: market. Determine demand and supply equation after tax Given the following information: QD = 240 –…

A: QD (Quantity demanded) describes the TA (total amount) of commodity or services that a person DD…

Q: The government is considering levying a tax of $60 per unit on suppliers of either concert tickets…

A: Graph: Concert tickets (Deadweight loss = area of triangle ABC as shown, since I can't access your…

Q: 1. Given the following information Qd = 240 – 5p Qs= P Where Qd is the quantity demanded, Qs is…

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: Question 2 Given the following information Qd = 240 – SP Qs = P Where Qd is the quantity demand, Qs…

A: Let Pb is the price for buyerand Ps is the price for sellerNow government imposed a per unit tax of…

Q: Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is…

A: The demand and supply are given and the tax rate charged on the sellers is given to be $12. Thus,…

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: Using a hypothetical demand and supply equations explain what would happen if government imposes an…

A: An Indirect tax is an assessment/tax imposed by a governing body, indirectly from the consumer via…

Q: Illustrate, with the use of an appropriate figure, what the deadweight loss from the imposition of a…

A: Answer: Deadweight loss is caused due to various kinds of market interventions, it includes…

Q: Suppose the supply is perfectly inelastic, which means the price elasticity of supply is 0. A…

A: As supply is perfectly inelastic , the supply curve is vertical in nature. The imposition of tax…

Q: The article does not mention the costs involved with the imposition of a sugary tax. Illustrate,…

A: Price floor is a minimum price at which a seller can sell a commodity. The government uses a price…

Q: Identify whether the statements about the economics of taxes are true or false. a. An excise tax…

A: Identify whether the statements about the economics of taxes are true or false.   a. An excise tax…

Q: Use the graph below to answer the next two questions: P PB-100 P=80 P₁=75 1. 2. P.S=0 =60 1500 1875…

A: Tax refers to the sum of money that governments of a country or state collects from its citizens and…

Q: What happens to the deadweight loss and taxrevenue when a tax is increased?

A: Taxes refer to the legal proceedings and the formalities that need to be addressed by every citizen…

Q: Assume that the monthly demand for Gala apple in the US is given by q=1200-300p and quantity is in…

A: Demand for Gala apple; q=1200-300p p=1200-q300 Supply of Gala apple; q=-200+400p p=200+q400 Tax…

Q: Suppose an economist estimates the price elasticity of demand for sugary drinks is -4.2, while its…

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

Q: Would consumer or producer carry the burden of tax if good is elastic? Show on a graph

A: The tax burden is decided based on the elasticity of demand and supply. If elasticity of demand is…

Q: if the government doubled the tax on gasoline,can you be sure that revenue from the gasoline tax…

A: A loss of deadweight is an expense to the economy due to market mismanagement, which happens if…

Q: How much deadweight loss a tax causes depends on:   A. how responsive buyers and sellers are to a…

A: Deadweight loss is created through taxes as when taxes are imposed price tends to change in the…

Q: Which of the following statements is correct regarding a tax on a good and the resulting deadweight…

A: Dead weight Loss is the term appointed to the distinction underway and utilization of some random…

Q: Assume that the market for a good is in equilibrium at a price of $20 and a quantity of 100 units.…

A: The equilibrium is established where the demand and supply are equal. The imposition of tax by the…

Q: When an excise tax is imposed on sellers, the of the tax. curve shifts by the amount supply;…

A: Correct answer "supply; upward".

Q: Price Supply P3 P1 Demand Q1 Q2 Quantity Refer to the figure above. Suppose the government imposes a…

A: When the government imposes taxes, total surplus is not maximized and it resulted in loss to the…