Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 4, Problem 11CQ
What is the nature of the
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Explain why the imposition of the price ceiling does not result in a deadweight loss.
Based on your knowledge of the price elasticity of demand, do you think the deadweight loss of a soda/junk-food tax would be relatively large or relatively small?
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Based on your knowledge of the price elasticity of demand, do you think the deadweight loss of a soda/junk-food tax would be relatively large or relatively small? Why? Do you think taxing junk food would be a good idea? Based on your analysis, would it really help reduce the number of obese people in the United States? Explain.
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Microeconomics: Private and Public Choice (MindTap Course List)
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Which of the following taxes do you think would cause the larger deadweight loss? Why?(a) a poll tax or a sales tax;(b) a sales tax on both services and goods or a sales tax only on goods;(c) an income tax only on interest and dividends or an income tax on income from all sources;(d) a tax on soft drinks or a tax on all beverages
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What happens to the deadweight loss and taxrevenue when a tax is increased?
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