With the help of a numerical example, explain why California and Maine tax cannabis by weight rather than by price. Excellent explanation of why California and Maine tax cannabis by weight instead of price, with reference to a numerical example
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With the help of a numerical example, explain why California and Maine tax cannabis by weight rather than by
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- With the help of a numerical example, explain why California and Maine tax cannabis by weight rather than by price. Excellent explanation of why California and Maine tax cannabis by weight instead of price, with reference to a numerical example. “Because states generally set their cannabis tax rates as a percentage of price, their revenue per sale sinks in direct proportion to the fall in cannabis prices...” When considering the possibility of legalizing the recreational use of cannabis, had the state governments of California and Maine already anticipated the price decline for cannabis after legalization? If yes, should the state governments of California and Maine choose the tax-per-price scheme or the tax-per-weight scheme? The tax-per-price scheme: In NZ, the current GST (goods and sales tax) rate is 15%. If you spend $115 for a shirt in a shopping mall, $100 are the sales revenue for the seller and the rest of $15 is the GST (15%*100=$15) for the government (Inland Revenue). o The…With the help of a numerical example, explain why California and Maine tax cannabis by weight rather than by price.many video game retailers make a great deal of money by taking advantage of the doctrine of first sale. they purchase and re-sell used games. recently, some video game makers have tried to stop this practice by charging people who bought the used game an additional fee for online play, a fee that they do not charge to the first purchaser. does this practice violate the doctrine of first sale? is this policy fair? explain your reasoning.
- Which of the following statements is not correct concerning government attempts to reduce the flow of illegal drugs into the country? Drug interdiction a. raises prices and total revenue in the drug market. b. can increase drug related crime c. shifts the demand curve for drugs to the left. d. shifts the supply curve of drugs to the left.When considering the possibility of legalizing the recreational use of cannabis, had the state governments of California and Maine already anticipated the price decline for cannabis after legalization? If yes, should the state governments of California and Maine choose the tax-per-price scheme or the tax-per-weight scheme?If as suggested in the article, the proceeds of the tax are used to fund an anti-smoking campaign and the campaign is successful. Group of answer choices Will increase the percentage change in quantity demanded from a given percentage change in price. This will make cigarette demand in New York more elastic. This will make cigarette demand in New York more inelastic
- Consider the demand and supply for illicit drugs. Assume you have been appointed by the government to recommend on an optimal policy to tackle the problem. You are told that the price elasticity of demand (or own-price elasticity) is <1 (i.e., inelastic) and that the price elasticity of supply is >1 (i.e., elastic). Would you recommend the government intervene on the demand side or the supply side. Explain your answer. What sorts of policies would you recommend?Graph the market for an illegal drug and explain the shape of each curve. List at least four ways the US govt. fights the “war on drugs” and identify each as either a supply-side or a demand-side strategy. On a new graph, illustrate a large decrease in supply and explain the result in terms of market P and Q. On a third graph, illustrate a small decrease in demand and explain the new result. Based on Parts 3 and 4, which strategies—supply or demand—are more effective in decreasing quantities of illegal drugs that are exchanged in these markets?Graph the market for an illegal drug and explain the shape of each curve. List at least four ways the US govt. fights the “war on drugs” and identify each as either a supply-side or a demand-side strategy. On a new graph, illustrate a large decrease in supply and explain the result in terms of market P and Q. On a third graph, illustrate a small decrease in demand and explain the new result. Based on Parts 3 and 4, which strategies—supply or demand—are more effective in decreasing quantities of illegal drugs that are exchanged in these markets? If you were the head of the US Congressional Finance Committee, how would you allocate funds among these strategies and why?
- so what are the revenue implications of the two policies?(minimum unit price and a tax on alcohol)Market demand for taxi-rides (x) per day in Smallville is p = 20 − 0.1x. Market supply is perfectly elastic at $10 per ride. There is currently a 10% tax on taxi rides, but the town decides to raise the tax slightly to 11%. Find the marginal excess burden from this policy change, as well as the average excess burden per dollar of revenue, before and after the change.For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Triple Sevens is charging $200 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevensrises from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Triple Sevens are .
