USA/Fiji No-Tax Tax No-Tax (10000,-99989) (10100,-89990) (9900,-9989) (10000,10) Tax We now want to understand whether the outcome above was driven by the fact that the government had to make these decisions simultaneously. Suppose instead that the US can move first and set an example to the rest of the world by choosing whether to impose a tax on polluting technology or not Fiji then observes this decision and chooses whether to impose a tax on its polluting technology. Th game therefore becomes a dynamic game, but the payoffs and actions remain as described in the previous sections. Actions: (a) Only the US imposes a tax: Tu = 2, tf = 0. (b) Only Fiji imposes a tax: TF = 2, TU = 0. (c) Both countries impose a tax: TU= TF = 2. (d) Neither country imposes a tax: TU TF= 0. 1. Represent this dynamic game using a game tree.

USA/Fiji No-Tax Tax No-Tax (10000,-99989) (10100,-89990) (9900,-9989) (10000,10) Tax We now want to understand whether the outcome above was driven by the fact that the government had to make these decisions simultaneously. Suppose instead that the US can move first and set an example to the rest of the world by choosing whether to impose a tax on polluting technology or not Fiji then observes this decision and chooses whether to impose a tax on its polluting technology. Th game therefore becomes a dynamic game, but the payoffs and actions remain as described in the previous sections. Actions: (a) Only the US imposes a tax: Tu = 2, tf = 0. (b) Only Fiji imposes a tax: TF = 2, TU = 0. (c) Both countries impose a tax: TU= TF = 2. (d) Neither country imposes a tax: TU TF= 0. 1. Represent this dynamic game using a game tree.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...

See similar textbooks

Similar questions

A religious group engaged in the sale of bibles and other religious articles was required to pay taxes on thesales of such merchandise. Is the imposition of the tax valid?
iven the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is imposed on the commodity, i. 1860 2575 i.determine the equilibrium price and quantity before the imposition of the tax. ii. Determine the equilibrium price and quantity after the imposition of the tax. iii. compare the results in (i) and (ii). error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward Question Asked Sep 2, 2020 1 views Given the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is imposed on the commodity, i. 1860 2575 i.determine the equilibrium price and quantity before the imposition of the tax. ii. Determine the equilibrium price and quantity after the imposition of the tax. iii. compare the results in (i) and (ii). iv. graph the results in (i) and (ii). Please I need solution for only iv Thank you
QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Producer suprlus after tax
The following table shows the before-tax and after-tax Gini coefficients for Mexico and Canada. Mexico Canada Before tax 0.473 0.427 After tax 0.458 0.303 Discuss the figures in the table in terms of income distribution and compare the taxation policies in the two countries.
True or False: A $3 tax on fruits and vegetables would be more effective at increasing tax revenue if the supply of fruits and vegetables were more price elastic, holding demand constant.
The tax on cigarettes in New York City is one of the highest in the nation—$5.85 per pack. What are some of the secondary effects of this tax? Check all that apply.
The Earned Income Tax Credit (EITC) is a form of negative tax that increases the incomes of workers with earnings but is eventually phased out to zero as earnings rise above a certain level. true or false? a. true b. false
Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or Â£0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or Â£0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about Â£0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16
Suppose a luxury tax is levied on 'luxury cars' luxury being defined as having an engine larger than 2 liters (liter is about 1/4 of a galoon just in case you aren't familiar). What can be expected to happen? Question 10 options: Some car models will be refitted with smaller engines to avoid the tax Less luxury cars will be sold Producers of luxury cars will be hurt All other answers are correct
30. Steve earned $50 in income last year and the current tax brackets are 20% for the first $10 of income, 30% for the next $10 of income, and 50% for all additional income. In addition there is a $20 deduction that exempts that amount of income from taxation. Steve’s total taxes are _____.
What is the tax liability share for consu
Marginal tax rate in KS for single filter is T(I)= 3.1% $0 ≤ I ≤ 15,000 5.25% $15,000 ≤ I ≤ 30,000 5.7% I > 30,000 The standard deduction is $3,000 How much would someone who earns $13,000 a owe in state taxes?