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

Q: Say the quantity supplied of corn is the same no matter the price of corn. If the government passes…

A: Because the quantity supplied does not change,it would be inelastic.Therefore burden of sales tax…

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: 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: Consider a producer who faces a linear demand curve P = 24 – Q, where P is the price in dollar ($)…

A: Tax refers to the sum of money paid by the consumers and producers to the government of a nation.…

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: At the current market equilibrium, the price elasticity of supply for a certain good is much lower…

A: Given: Price elasticity of supply is lower than price elasticity of demand . Government imposes a…

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 goods are given as follows: Dx=100-3Px+Py+3Pz Dy=80…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If the government wants to use a Pigouvian tax to alleviate the problem of obesity contagion, what…

A: We are going to discuss ways to minimize negative externalities.

Q: The government has introduced an excise duty of 10 percent on mealie meal. This essentially means…

A: Tax is the income for government.

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Alcohol, tobacco, and gasoline have inelastic demand, so the buyers of these items pay most of the…

A: The alcohol, gasoline, tobacco have inelastic demand, that is less than 1, it means when the price…

Q: onomists in Champaign have been studying the local market for pizza. The market is described in the…

A: when the government subsidies the consumption by 2 $ subsidy, the consumption of pizza rises and the…

Q: Suppose the supply curve for cars is more elastic than the demand curve for cars.  If the government…

A: Tax incidence can be shifted only through sale and purchase transaction.  Share of tax borne by the…

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: 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: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: It is given that elasticity of demand= -0.8, and elasticity of supply=0.7 is inelastic in nature.…

Q: What is the tax incidence of an excise tax when demand is highly inelastic and highly elastic?

A: When appropriate the government can intervene in a market by levying excise tax in order to…

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: 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: The previous question was: The New York City announces they will be placing a three dollar tax on…

A: The impact of the imposition of tax would affect the demand or the supply of the tax depending on…

Q: Demand is Q=60-2p, Supply is Q=3p. Government imposes a per value tax of τ on producers (so,…

A: When a tax is imposed, the price of the commodity increases. The buyers pay more for the same…

Q: Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a…

A: A 10,000 percent tax on bullet will not likely to generate a lot of revenue.  The reason is as the…

Q: Suppose that the supply of oil is elastic and demand for oil is inelastic. If the government taxes…

A: Buyers will bear most of the burden of tax.

Q: Question 6 The September 28, 2021 edition of the Wall Street Journal contained an article titled…

A: Excise duty is a form of indirect tax that is charged on the goods that are produced within the…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: Tax burden of buyers = Es / (Es - Ed), where Ed: Elasticity of demand Es: Elasticity of supply

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: 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: 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: Suppose the California legislature passed a sweeping law to lower the number of regulations for…

A: In this case sweeping law will empowers California government to make necessary law and give proper…

Q: Economists in Champaign have been studying the local market for pizza. The market is described in…

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

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 Australian government imposes a sales tax on a product and both buyers and sellers…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: Which is an excise tax on sugary drinks more likely to accomplish: a large reduction in the…

A: Tax is the amount that is charged on the revenue of an individual or organization by the government.

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: Does a tax on buyers affect the demand curve?

A: The demand curve shows the negative relationship between price of the goods and its quantity…

Q: Answer the following questions for the price-demand equation. p+0.002x = 40 (A) Express the demand x…

A: Price elasticity of demand is defined as the percentage change in the quantity demanded for a good…

Q: How may we use" Elasticity of Tax" to assess if there has been an increase/ decrease in the size of…

A: Answer: Tax elasticity refers to the response of revenues to change in income, given the tax…

Q: The following statement: "If the federal government raises the sales tax on gasoline by $0.25, then…

A: The concept is based on price elasticity of demand. In the case of Gasoline, price elasticity of…

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: Consider the effect of the anti-smoking campaign to be funded by proceeds of the cigarette tax. If…

A: The demand curve for a commodity can be shifted as a result of change in taste and preference.…

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…

Q: In a market where the supply curve is perfectly inelastic,how does an excise tax affect the price…

A: When the government imposes a per-unit tax on a good then both buyers and sellers of the good share…

Q: For what kind of preferences will the consumer be just as well-off facing a quantity tax as an…

A: Consumer well-off facing a quantity tax in the case of the kinked demand curve for the complement…