Suppose government impose a tax of 1 dollar per bottle on sellers of industrial detergent. Explain 3 dimensions in which you can explain the effect of this tax.

Q: With the help of appropriate diagrams, explain how a tax can be used to reduce the consumption of a…

A: Tax are contribution to goverment which are levied on individual as well as or a firm which are…

Q: Some research by the local university shows that eating burritos improves health in several ways.…

A: (Q) Some research by the local university shows that eating burritos improves health in several…

Q: The figure below shows a market of good C. Suppose that the government levied a tax on C.  Answer…

A:

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

A: Answer-

Q: Suppose there is only one movie theatre in a town and the equilibrium price and quantity for movie…

A: Initially, the equilibrium price is $7 and the quantity is 940 visits. After the imposition of a tax…

Q: Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the…

A: Given: Qd=300-6P Qs=-40+6P Note: Part 2 has been answered as per the student's choice.

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: Suppose that the government imposes a tax on eigarettes Use the diagram below to answer the…

A: The diagram in the question above shows that the demand curve (D) without the tax and supply curve…

Q: The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of…

A:

Q: if deadweight loss is $24,000 under a tax of $4 per unit, what is deadweight loss under a tax of $2…

A: DWL = $24,000 t = $4/unit

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram in the photo below to…

A: Consumer surplus is the area under the demand curve and above the market price. Whereas, the…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: There is a market for Cigarettes, and the government imposes a tax on cigarettes. The imposition of…

Q: What is the lost consumer surplus due to the tax (in $millions)?

A: The lost consumer surplus is this yellow area Try find this area.

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: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Equilibrium refers to the point where demand and supply intersect each other.

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Consumer surplus after tax = ½ * (Max price – Price consumer pay after tax) * (after tax quantity -…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Here, according to the given graph, when tax is imposed, price for producers is $8 and price for…

Q: (Figure: Tax on Seller) In the graph shown, the original equilibrium price is $50. A $6 tax is…

A: The equilibrium price before imposition of tax = 50 if tax of $ 6 is placed on the sellers then the…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Consumer surplus after tax = ½ * (18 max price - 12 $ after tax price paid ) * (10 qty afte tax - 0)…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Price received by producers = 8 Quantity of cigarettes sold= 10 Price paid by consumers = 12 The tax…

Q: How many packs will be consumed?

A: The equilibrium price is $2 and the quantity demanded at that point is 50 cups If a tax of $1 is…

Q: Determine Total surplus afhter tax

A: Total Surplus = Consumer Surplus + Producer Surplus + Tax Revenue earned by Government

Q: Consider the deadweight loss generated in each of the following cases: no tax, a tax of $40 per…

A: Deadweight loss (DWL) = (1/2) x Tax per Unit x (Pre-tax equilibrium quantity - After tax quantity).…

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: Green et al. (2005) estimate that the demand elasticity is -0.47 and the long-run supply elasticity…

A:

Q: Please refer to the description of a tax on a market, represented by the graphic Consumer surplus…

A: Consumer surplus is that area which are lies below the demand curve and above the price level.

Q: This chapter analyzed the welfare effects of a tax on a good. Consider now the opposite policy.…

A: A subsidy is a government-provided benefit to a person, corporation, or organization. It typically…

Q: For this question, suppose the market for widgets is perfectly competitive and the government…

A: The loss of market equilibrium leads to decline in economy efficiency. This reduction in economic…

Q: B. $2.00 C. $2.20 D. $2.60 E. $1.80

A: The equilibrium in the market is where the demand and supply curve intersect. When the tax is…

Q: The government is considering levying a tax of $120 per unit on suppliers of either leather jackets…

A: Taxes are defined as mandatory contributions which are imposed by the government on individuals or…

Q: 1. If the popular television show The Bachelor is shown on pay-per-view television every Monday at 9…

A: If the episodes are shown for free then the price they pay for it is 0. And the willingness to pay…

Q: area(s) in the graph identify the loss of producer surplus due to the tax?

A: Producer surplus is the surplus earned by the producers. It is the area between below the price line…

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: .12) In the effort to reduce alcohol consumption, the government is considering a $1 tax on each…

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

Q: Question 1 In the market for swim suits, demand is P = 58 - 0.011Q and supply is P = 5 + 0.009Q. The…

A: When the tax is imposed whether on buyers or sellers, it decreases quantity traded in the market.…

Q: The inverse supply function for pizza is: pS = 4 + QS The inverse demand function for pizza is: pD =…

A: Given data, Supply function, Ps=4+Qs Demand function, Pd=10-Qd There is a tax of $2 on production

Q: Instead, suppose the government taxes smartphones. The following graph shows the annual supply and…

A: Case I                                                         Case IILeather jacket…

Q: What would happen to consumer surplus, producer surplus and deadweight loss if the government stops…

A: The subsidy is the market tools available to the governing body in order to promote specific…

Q: Explain the efficiency implications of a selective tax on a commodity, using the consumer surplus…

A: In the welfare analysis of levying a tax, the concept of consumer surplus (CS) means that demanders…

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: Suppose that the government imposes a constant per-unit tax of 2 cent on producers. In the diagram,…

A: Taxation basically refers to the usual process through which a government or other taxing body…

Q: 12) In the effort to reduce alcohol consumption, the government is considering a $1 tax on each…

A: Given: QD= 500,000 – 20,000*PQS= 30,000*PTherefore, at equilibrium,QD=QS500000 – 20000P =…

Q: Neither the supply of nor the demand for a good is perfectly elastic or perfectly inelastic.…

A: Placing a tax on a good, shifts the supply curve to the left. It leads to a decrease in demand and…

Q: Identify at least one positive externality from running a donut shop. Identify at least one negative…

A: Concept Externalities are the effects of production or consumption that are placed on third parties.…

Q: Suppose a university has 5,000 parking spaces. Show by a supply and demand diagram which side of the…

A: The supply curve determines the quantity that the suppliers are willing to supply at a given price.…

Q: Question 5 Suppose that the government imposes a tax on cigarettes. Use the diagram b is the supply…

A: Suppose that the government imposes a tax on cigarettes. This diagram shows D is demand curve before…

Q: Sinead commutes from her suburban residence to the city center. When asked her opinion of a proposed…

A: Congestion taxes are imposed on the use of public good for reducing the excess demand. A higher…