What are pros and cons to increasing the gasoline tax?

Q: What happens to a country's economy if there is a high tax for the company that earns more in that…

A: Taxes are the mandatory payments that has to he made to the government.

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: The govemment is considering imposing taxes on the sellers of certain classes of products. The first…

A: Meaning of Tax Imposition:The term tax imposition or the tax hike refers to the situation under…

Q: Why is gasoline heavily taxed? Explain

A: A government plays a crucial role to overcome the problem of scarcity in the economy. It regulates…

Q: The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will…

A: Elastic supply means when price increases by some percentage, quantity supply increases by more than…

Q: Which of the following is the unit tax?A. $0.45B. $0.50C. $1.00D. $1.50E. $2.00

A: The supply curve i.e. Supply and demand curve indicates that the Equilibrium quantity is Q and…

Q: If the market price before the tax is $10.05, the tax implemented is $5.9 on buyers, and the market…

A: The tax is the charge or fee on goods and services charged from the economic agent imposed by the…

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: and the price thai A. doesn't change; doesn't change B. doesn't change; rises by $1 a can C.…

A: 3. Compared to the old total surplus, the new total surplus will be less by the amount of the tax…

Q: A government is considering imposing a tax on a market: in Market 1 the tax would have a significant…

A: Correct: Market 1

Q: What is the price that suppliers will receive after the tax? а. 30

A: When govt imposes tax on either buyer or seller, burden of the tax will be shared by both by buyer…

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: 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: 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: Suppose the price elasticity of demand for luxury boats is zero. Explain, with the use of a diagram,…

A: Price elasticity: It refers to the change in the price of goods and services. The more change in…

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: Analyze taxes on tobacco through the perspective of: a. a smoker b. a cigarette firm

A: In an economy, when taxes are imposed on buyers or sellers, there will be different impact due to…

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: Why does the government ass excise taxes to certain products?

A: In a market, government intervenes in different ways by providing subsidies or imposing taxes.

Q: If the government places a tax of $500 on luxury cars, what happens in the market? Please assume…

A: Demand refers to the quantity that a consumer wishes to purchase at a given price in a given period…

Q: How does a tax on a good affect the price paid by buyers, price receive by sellers, and the quantity…

A: Tax is a term that defines a charge imposed by the ruling authority, that is government, on market…

Q: To raise money for a new student union, the Student Snack 2.25 Bar charges a tax of $0.75 on each…

A: The equilibrium in the market is obtained at the intersection of the demand curve and the supply…

Q: The reason which determines the elasticity of tax burden on buyers and sellers.

A: Elasticity determines who will bear the burden of taxes: buyers or sellers. When Demand is more…

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: Find out NIT if indirect tax is $72 and subsidies $40?

A: According to ques we are given that  Indirect tax= $72 Subsidies =$40 we have to find NIT

Q: benefits of subsidies

A: A subsidy is an incentive given by the government to individuals or businesses in the form of cash,…

Q: Which one of the two policies, a tax on pork meat consumption, or a tax on pork meat production, is…

A: Pork sector of animal husbandry is very unorganized sector. It mostly distributed under small…

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: 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: How can tax incidences have a positive and negative impact on the economy?

A: Tax incidence refers to the burden of a particular tax that is imposed by the government.

Q: If the government places a $500 tax on luxury cars,will the price paid by consumers rise by more…

A: Tax is a compulsory payment that is imposed by the government either directly or indirectly on the…

Q: Does a tax increase or decrease the quantity of the taxed good that is consumed?

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

Q: Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by…

A: Equilibrium is attained in the market where the demand and supply intersect each other.

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: A sales tax is imposed on good A. The supply of good A is not perfectly elastic or perfectly…

A: Part a) The tax incidence depends on the relative price elasticity of supply and demand. When supply…

Q: New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes…

A:

Q: Suppose before a tax is created, the market price is $10.66 and the quantity is 120.  Now suppose a…

A: Taxes refer to the involuntary fees that are levied by a central or state governing authority…

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…

Q: As price elasticity of demand increases, the burden of a tax gets _______; as price elasticity of…

A: Price elasticity of demand: It can be define as the ration of percentage change in quantity demanded…