Suppose that your state raises its sales tax from5 percent to 6 percent The state revenue commissionerlo~asts a 20 percent increase in sales tax revenue.Is this plausible? Explain.

Q: b. Who pays more of the tax incidence? O Consumers and producers split the tax. O Producers, because…

A: The graph is showing demand and supply of tanning session when government imposes excise tax of $15…

Q: Suppose that the government imposes a tax on heating oil. Would the deadweight loss of this tax…

A: In economics, inefficient allocation of resources tends to create deadweight losses which reduce the…

Q: Figure 2-1 20 rice 18 16 14 12 10 D 10 20 30 40 50 60 70 80 quantity

A: With the tax rate of $6.

Q: Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall entirely on the…

A: If a tax is imposed on the buyer of a product, the tax burden is shared by both buyers and sellers.…

Q: Suppose that in the market for toys, the price of a toy is $24, the quantity sold is 96, the demand…

A: When a tax is introduced, the amount that is paid by consumers and producers of that tax is called…

Q: If sellers bear more of the burden of taxation then O supply is more elastic than demand O…

A: Tax incidence refers to the distribution of tax burden between buyers and sellers. The burden of the…

Q: If GDPMP of a country is 50 billion and product taxes are 2 billion while subsidies given are worth…

A: The gross domestic product (GDP) is the money or market value of all the finished goods and services…

Q: f the government quadruples the amount of tax on gasoline, can you be sure that revenue fromg…

A: Tax: refers to the unilateral payment towards the government made by the public. Deadweight loss:…

Q: In Virginia, in 2019, if you made $10,000 a year in income, you paid $120 +5% of excess over $5,000.…

A: There are different types of taxes imposed by the government on the basis of the type of transaction…

Q: Suppose that the government has decided to place a $2 per litre tax on soft drinks. In this market,…

A: The economics as a study is based upon the idea and decision making where the resources are to be…

Q: Discuss the effects of indirect taxes on producers.

A: Effects of indirect taxes on producers Indirect taxes are the taxes levied on the goods and…

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: In Virginia, in 2019, if you made $10,000 a year in income, you paid $120 + 5% of excess over…

A: A tax is a necessary fee or a type of monetary charge that is imposed by a government on a person or…

Q: What happens to consumer and producer surpluswhen the sale of a good is taxed? How does thechange in…

A: The following diagram shows the producer and consumer surplus when the sale of the good is taxes.…

Q: Assume the government imposes a $2.00 tax on a good that costs $5.00. If the price buyers pay…

A: Burden of tax refers to those who essentially end up paying the tax.

Q: What is merits and demerits of direct tax?

A: A tax is described as one that the government imposes on citizens who participate in the economy in…

Q: The inverse demand function of chicken wings is p=50- 4g. The supply function of chicken wings is…

A: Given Demand function p = 50 - 4q -------(1) Supply function q = p ---------(2) At market…

Q: What are the consequences of an increase in direct taxation?

A: Tax is the charge which is levied by the government. It is a source of government revenue which the…

Q: 1. The following are issued by the Commissioner of Internal Revenue, except: a. Revenue Memorandum…

A: 1. a. Revenue Memorandum circulars

Q: Case II: Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to…

A: This is a hand drawn diagram. So, there can be little discrepancies. The new equilibrium quantity of…

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: Explain how an increase in tax can reduce tax revenue of a government

A: Tax is the major source of revenue for the government. The major government spending is funded from…

Q: Title The supply and demand equations for a good are respectively. The government decides to impose…

A: Given: The supply and demand for an equation are: Qd = 500 - 9pQs = -100 + 6p Tax = t per unit of…

Q: Supply of a good is more elastic than the demand for the good. Who will bear the larger burden of…

A: Taxation refers to per unit tax imposed by the government of the country on some particular goods or…

Q: Suppose the market demand and supply equations for flowers are Qp = 100 – 2P and Qs = 3P,…

A: Given Market demand function QD =100-2P            ....(1) Supply equation Qs=3P…

Q: What are the civic implications of taxation?

A: Taxation refers to the economic factor that is used by the government to generate revenue and use…

Q: Suppose in Fiscalville there is a O percent tax on the first $10,000 of income, but there is a 20…

A: Given information:

Q: Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but there is a 15…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of…

A: An excise tax is defined as the tax imposed while producing the goods. In the case, the tax imposed…

Q: In the market for therbligs, the supply curve is Ps=$10+$0.05Qs  and the market demand curve is…

A: Demand Equation: P=20-0.10Qd Supply equation : P=10+0.05Qs Equilibrium:  0-0.10Qd=10+0.05Qs Demand…

Q: Q2: Suppose the demand function is p = 50 - 2q………………1 and the supply function is p = 10 +…

A: Since you have posted multiple parts questions, we will solve the first one for you. If you want any…

Q: described by the equation Q = 70 - 2P, and the supply curve is described by the equation Q = 10 + P.…

A: Equilibrium is achieved at the output level where quantity supplied equals quantity demanded.

Q: Suppose the government of Country X would like to reduce traffic congestion by imposing a per-unit…

A: Tax causes the supply curve to shift left, thus reducing the quantity and increasing the prices.

Q: Which of the following is an example of an excise tax? O a) cigarette tax O b) social insurance tax…

A: Excise tax is the tax which consumers don't pay directly to the government. It is an indirect tax.

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: Discuss the effects of direct taxes on consumer behavior.

A: Direct taxes are those taxes which are payable on the income of an individual or entity. Income tax,…

Q: Which of the following is an example of a progressive tax?a. The excise tax on cigarettesb. The…

A: OPTION C - Federal Personal Income Tax A progressive tax is a tax where the tax burden increases…

Q: Tax incidence is O A. the potential division of the burden of a tax between buyers and government in…

A: In a market, when government imposes tax on any of the market participants, this tax will have two…

Q: explain why taxation is considered as the lifeblood of the state

A: Taxation: It is a compulsory charge which is being levied on the individuals or groups by the state…

Q: Market for

A: Tax of 6/unit will raise the supply curve by 6.

Q: Why is the burden of a tax to taxpayers greater thanthe revenue received by the government?

A: Tax Burden is a proportion of the taxation rate forced by government. It incorporates direct…

Q: nich among the following is a direct tax? [A] Excise Duty [B] Sales Tax [C] VAT [D] Income Tax

A: According to the given question the direct tax is Option(d) is correct that is the income tax Reason…

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: Consider a product that is fixed on supply QS=4 and the demand for the product is given by QD=…

A: Elasticity of demand is the % change in quantity demanded due to 1% change in price. Elasticity of…

Q: suppose the government levles an excise tax of $3.00 per pack on cigarette buyers. Draw after-tax…

A: The taxes are the form of market regulations that drives a wedge between the price paid by the…

Q: Suppose the weekly demand for a product is given by p+2g = 840 and the weekly supply before taxation…

A: Given : Weekly demand=p+2q=840 and p=840-2q Weekly supply=p=0.02q2+0.62q+7.1

Q: (a) In a competitive market, the incidence of an excise tax ("who really pays the tax") is on…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…