Suppose the California legislature passed a sweeping law to lower the number of regulations for building homes such as increasing the parking requirements and setback requirements. Suppose there is a housing tax.   a. What is the effect of this law on the PES for housing?   b. What effect would this law have on the tax burden for buyers?

Q: Suppose the federal government decides to tax the sale of pizzas. Use the graph to the right to…

A: The given figure shows that the initial equilibrium point is where demand for pizza i.e. demand…

Q: The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays…

A: Given  The tax imposed is paid by the buyer only  We know that the perfectly elastic side does not…

Q: Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: a) The graph mentioned below shows the market for beer without tax.  The horizontal axis shows the…

Q: What is the effect of a $1 specific tax collected from producers on equilibrium price and quantity…

A: As demand curve is perfectly elastic so demand curve is horizontal and parallel to x-axis. Supply…

Q: 1. In the market for beer, Qd = 100 - P Qs = 3P The government decides to levy a $3 tax on…

A: When a per unit tax is levied on suppliers, it will shift the supply curve up by the amount of tax.

Q: When a good is taxed, the burden of the tax fallsmainly on consumers ifa. the tax is levied on…

A: Tax: A compulsory payment to state revenue levied by the government on worker's income and firm's…

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

A: When the government Imposes tax it directly increases the Revenue of the government and the burden…

Q: What determines how the burden of a tax is dividedbetween buyers and sellers? Why?

A: The tax incidence depends on the price elasticity of supply and demand. Most burden falls on the…

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: Draw a well labeled graph showing the impact of the tax. On whom does the tax burden fall--the teams…

A: The supply of tickets is 38,000. So  in the below diagram, a  tax amount which is paid by the…

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

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: Generally speaking, how do taxes affect markets? What affect does legal incidence have on…

A: Taxes is the mostly government  as their major source of income.Simply put, they are a tax or fee…

Q: The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays…

A: Elasticity measures how much tax is borne by buyers or suppliers. Higher the elasticity, flatter the…

Q: What would be the effect of a decrease in government taxes on a good's supply curve, ceteris…

A: Answer: A decrease in tax will lead to a decrease in the cost of production. As a result, the supply…

Q: In the past, some counties and countries have imposed taxes on sugar, saturated fats, and food made…

A: Tax: It refers to the income of the people which is paid to the government in the form of taxes.…

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: The graph shows the market for a vital-to-life drug on which the government has imposed a tax of $2…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.

Q: "In South Africa, the tax on insulin is between 10 and 20 percent. If you are rich and living in…

A: Introduction this topic related to Insulin which is consumed by diabatic person's.

Q: The following graph shows the daily market for wine. Suppose the government institutes a tax of…

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

Q: In which of the following cases would an excise tax be borne mostly by sellers?   a. A tax on…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.

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: If the government decide to increase taxes on sugar, who do you think will carry the burden of…

A: The equilibrium price and quantity of a good or service is determined by the forces of market demand…

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 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: Suppose the city of Strelsau has a 10%property tax on rental properties. Rudolph makes $100,000 a…

A: a. Strelsau has a 10% property tax on rental properties. This tax rate does not depend on the value…

Q: Say a producer is taxed $t on every unit of output sold. Explain how the burden of that tax ends up…

A: When tax is imposed on the producer, the production cost of the producer rises because for every…

Q: ould consumer or producer carry the burden of tax if good is inelastic? Show on a grap

A: Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in…

Q: Imagine the government imposes a $30 excise tax on sellers of cell phones by charging $30 for each…

A: Equilibrium in the goods market is determined at the intersection of demand and supply curves.

Q: Suppose a good costs $5. Then, the government imposes a $2 tax on the good. What will the after-tax…

A: The exact value of the after tax price will depend on the steepness of the demand and supply curve.…

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: How does a tax on a good affect the price paid bybuyers, the price received by sellers, and the…

A: A tax is a monetary charge that is applied to a good or service. The tax will have the effect of…

Q: Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: Demand can be defined as the quantity of a good that the customers are able and willing to buy at…

Q: Suppose the government eliminates the income tax and replaces it with a consumption tax. With a…

A: After imposition of consumption tax the demand curve will shift leftward. Because tax will reduce…

Q: The UK government is considering the introduction of a unit tax on meat to alleviate the impact of…

A: Imposition of taxes on any good leads supply curve to move leftwards as the producer is unable to…

Q: The graph to the right shows the effect of a tax imposed on soft drinks. Use this graph to answer…

A: Deadweight is a cost to society caused by market inefficiency that occurs when supply and demand are…

Q: How does who a tax is imposed on impact who bears the burden of the tax? If a $3 tax is imposed on…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Think about the market for parking spaces in downtown LA. There is little flexibility in terms of…

A: a.When the demand for the parking lot is high in the town and the availability of the parking slots…

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

A: Equilibrium is achieved at the output level where Qs equals Qd.

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

A: In any market, equilibrium corresponds to demand for the good or service being equal to supply of…

Q: The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays…

A:

Q: Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split…

A: Demand And Supply  Demand refers to the quantities of a commodity that the consumers are ready to…

Q: If tax incidence is not affected by whether the government makes buyers or sellers pay the tax then…

A: In a market, governement imposes tax on the exchange of goods and services between seller and buyer…

Q: The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Suppose the government removes a tax on buyers of a good and levies a tax of the same size on…

A: When the tax is imposed by the government, it is shared by buyers and sellers regardless of whether…

Q: Suppose the government imposes a per-unit tax on the sellers of potato chips, shifting the supply…

A: A per unit duty, or explicit expense, is an expense that is characterized as a proper sum for every…

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

A: In a market, consumer surplus is calculated by using a specific formula that is: =(1/2)×quantity…