Suppose an ad valorem tax is imposed in which the Consumer Burden of the tax is less than the Producer Burden of the tax. Which of the following is most relevant O perfectly inelastic O perfectly unit elastic O perfectly elastic inelastic O unit elastic O elastic can not be determined
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- The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Q What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thanks in advance!Calculate the percentage of the tax borne by the demander and supplier in each of the following cases:Instructions: Enter your responses rounded to the nearest whole number. Elasticityof demand Elasticityof supply Percent borne by demander Percent borne by supplier a. ED = 0.1 ES = 0.5 % % b. ED = 1.0 ES = 2.0 % % c. ED = 1.3 ES = 0.9 % % d. ED = 1.9 ES = 0.7 % % e. Summarize your findings regarding relative elasticity and tax burden. Consumers bear a greater portion of the tax burden because consumers choose to buy the good. Whichever group (producers or consumers) has the lower elasticity bears the greater portion of the tax burden. Whichever group (producers or consumers) has the higher elasticity bears the greater portion of the tax burden. Producers usually bear a greater portion of the tax burden because the government generally levies more taxes on producers.very urgent!!! the demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.
- d. Holding Donald's income and Pd constant at $120 and $1 respectively, what is Donald's demand curve for carrots? e. Suppose that a tax of $1 per unit is levied on donuts. How will this alter Donald's utility maximizing market basket of goods? f. Suppose that, instead of the per unit tax in (e), a lump sum tax of the same dollar amount is levied on Donald. What is Donald's utility maximizing market basket? g. The taxes in (e) and (f) both collect exactly the same amount of revenue for the government, which of the two taxes would Donald prefer? Show your answer numerically and explain why Donald prefers the per unit tax over the lump sum tax, or vice versa, or why he is indifferent between the two taxes.The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.Suppose you are an aid to the Odododiodo Member of Parliament who is concerned about the impact of a new tax on the welfare on his constituents. You have explained to him that one of the ways he can determine the impact is to calculate the price elasticity as well as the consumer surplus. Conduct a formal analysis by undertaking the following exercises when the demand and supply functions for the goods in question are given as Qd=500-5p and Qs=2p-60 a. Sketch the supply and the demand curves.b. Calculate the equilibrium price and quantity.c. If government imposes a tax of ¢2 on this commodity, calculate the new price and quantity afterthe imposition of the taxd. Calculate the consumer surplus before the taxe. Calculate the own price elasticity of demand before the imposition of the tax.
- If the government imposes a tax on a product: O the MC will rise causing the level of output to rise. the MC will rise causing the level of output to fall. O the MC will rise causing the level of output to rise. O None of these answers are correct. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Q2: Suppose the demand function isp = 50 - 2q………………1and the supply function isp = 10 + 3q…………….2a) Find the market clearing price and quantity (equilibrium point)b) Sketch a graphc) Suppose the government imposes a per unit tax of $5 on producers, what would be the effect of this tax on market clearing price and quantity? ( show your answers)d) Find the consumer and producer tax burden.e) Calculate the tax revenue that the government received.Suppose the demand for grape jelly is perfectlyelastic (because strawberry jelly is a goodsubstitute), while the supply is unit elastic. A tax ongrape jelly would have _________ deadweight losses,and the burden of the tax would fall entirely on the_________ of grape jelly.a. sizable; consumersb. sizable; producersc. no; consumersd. no; producers
- a)Use the following demand and supply functions to calculate the elasticity of demand at market equilibrium QD=-53P+355 Qs=32P+65 Round your answer to the nearest hundredthb)Jack is looking to determine the difference in the cost of capital of debt between two debt issuers: Issuer One is selling the bond at par, with a face value of $1000, and semi-annual coupon payments of $60 Issuer Two is selling his bond at par, with a face value of $1100 and coupon payments of $50 every six months. However, Issuer Two must pay issuing expenses of $40 per bond, and a discount of $20. Both bonds term to maturities are expected to be 10 years. Help Jack to determine the difference in the cost of capital between these two bonds? Assume a tax rate of 40% A 2.34% B 0.02% C 6.34% D 7.37% E 1.31%(Answer the f) Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 + 2P. If the government then increases the seller's tax on the product amount of IDR 20/ unit of goods, what is the price and quantity of goods new balance Calculate the tax burden borne by consumers & manufacturers, as well governement tax revenue F. Calculate the amount of subsidy received by consumers and manufacturers , as well subsidies issued by the governmentOnly typed answer Green et al. (2005) estimate that the demand elasticity is minus−0.47 and the long-run supply elasticity is 12.0 for almonds. The corresponding elasticities are minus−0.68 and 0.73 for cotton and minus−0.26 and 0.64 for processing tomatoes. If the government were to apply a specific tax to each of these commodities, what incidence would fall on consumers? The incidence of a specific almond tax that would fall on consumers is nothing___percent. (Enter numeric responses using real numbers rounded to one decimal place.)
