Q: When a tax is placed on the sellers of cell phones, the size of the cell phone market a. and the…
A: Given:- Tax placed on cell phone seller To determine:- Size of cell phone market=?
Q: Define progressive tax.
A: A tax refers to an amount imposed on the person, commodities or any other item to earn revenue for…
Q: The graph shows the market for chocolate bars. Draw a point at the equilibrium quantity and…
A: Given, Equilibrium without tax, Demand = Supply Price = $3 Quantity = 6
Q: is it always possible to increase tax revenues by increasing tax rates?
A: Laffer curve represents the relationship between tax rates and tax revenue. It is an inverted U…
Q: Explain the impact of per-unit sales to the buyer and the seller, using a DIAGRAM that illustrates…
A: When sales tax is imposed on the producer, the production cost of the producer rises because for…
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: Governments tend to like to tax goods with inelastic demands. Why
A: Answer to the question is as follows:
Q: tax
A: The tax is the amount which government charges on their income or on through different items. The…
Q: How can the government improve tax collections without imposing much tax to the consumer?
A: When a taxing body, typically a government, levies or imposes a financial responsibility on its…
Q: What is the effect of government purchased and taxation on the level of income?
A: KEYS- There are two ways the government can influence fiscal policy: by raising taxes or by cutting…
Q: Find the net indirect taxes if the indirect taxes are $60 and the subsidies are $15?
A: indirect taxes = $60 subsidies = $15 net indirect taxes = ?
Q: Can you explain how to figure this out? The demand curve moved to the left Showing what the demand…
A: Initially when there were no taxes involved, the equilibrium price which the buyer paid and the…
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: If the government removes a tax on a good, then the quantity of the good sold will______.
A: The answer to the question is as follows :
Q: What are pros and cons to increasing the gasoline tax?
A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…
Q: If the government decide to increase taxes on sugar, who do you think will carry the burden of…
A: The equilibrium price and quantity of a good or service is determined by the forces of market demand…
Q: Give an example for the Average Tax Rates?
A: Average tax rate is the tax paid as a percentage of total income. The average tax rate can be…
Q: What are the consequences of an increase in direct taxation?
A: Tax is the charge which is levied by the government. It is a source of government revenue which the…
Q: An income tax put on a person's income raises the same amount of revenue as a quantity tax put on…
A: People are exposed to a consumption tax when they spend money, similar to how much they buy. When…
Q: Calculate the value of indirect taxes for the following two cases:- (1) Indirect tax = 0 ,…
A: We must first understand what is the concept of net indirect tax. Net indirect taxes are given by…
Q: When a tax is levied on a good, a. government revenues exceed the loss in total welfare. b.…
A: Taxes are the mandatory payments that are made by the individuals, firms, companies etc to the…
Q: How do taxation and government spending impact the economy of a country positively in three ways and…
A: Positive impact of taxation Cutting taxes enhance demand by increasing disposable income and…
Q: There is an _________ relationship between tax rate and supply of a good
A: The tax imposed by the government and the subsidy lend by the government all impacts the cost of…
Q: Would a tax on prescriptions drugs be more likely to be progressive or regressive? Why?
A: The Progressive tax is the theory in tax economics which advocates the proportional tax along with…
Q: A tax A) places a wedge between the price paid by the buyers and the price received by the sellers.…
A: Whether the tax is imposed on buyers or sellers, the effect of the tax is same. It leads to…
Q: If after a tax is imposed, the price paid by the buyer rises by $3 while the price received by the…
A: Given, After tax, price paid by buyer = rose by $3 After tax, price received by seller = falls by $2…
Q: what will happen to the equilibrium of mobile phones of government announces higher sales taxes on…
A: Imposition of sales tax results in leftward shift of the supply curve.
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: What is the best policy to implement with regard to taxes?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Discuss how a government might use taxation to affect the distribution of income
A: In an economy, the inequality of income distribution can be explained by the situation when a richer…
Q: Discuss the effects of direct taxes on consumer behavior.
A: Direct taxes are those taxes which are payable on the income of an individual or entity. Income tax,…
Q: What determines whether the buyer or seller pays the bulk of the tax?
A: The incidence of tax depends on the relative price elasticity of demand and supply.
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: A tax on umbrellas will most likely Select one: a. fall mostly on the umbrella buyers rather…
A: Taxes are the mandatory payment obligations which are required to be fulfilled by firms or consumers…
Q: If a tax is levied on the buyers of a product, the tax burden will fall entirely on the buyers. A.)…
A: Tax is revenue for the government.
Q: What happens to the tax revenue when the tax on a good increase gradually? (a) Will rise (b) Will…
A: ‘Deadweight Loss(DWL)’ can be defined as a cost that is created to society due to any kind of market…
Q: Market for
A: Tax of 6/unit will raise the supply curve by 6.
Q: Why will direct taxes increase faster than per capita income?
A: In an economy, the government imposes taxes on the income of the people in different ways such as…
Q: nich among the following is a direct tax? [A] Excise Duty [B] Sales Tax [C] VAT [D] Income Tax
A: According to the given question the direct tax is Option(d) is correct that is the income tax Reason…
Q: Whichofthefollowingstatementsis(are)correct? (x) A payroll tax is a tax on the wages that a firm…
A: A payroll tax is a tax that the firm levies on workers for social security purposes. It is directly…
Q: New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes…
A:
Q: In the diagram to the right, illustrating a per-unit tax equal to P, minus Pa, tax revenue is…
A: Tax revenue = D and F Excess burden = E and G
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…
Does a tax increase or decrease the quantity of the taxed good that is consumed?
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- Does a tax on buyers affect the demand curve?If the government wants to raise tax revenue, which of the following items are good candidates for an excise tax? Choose one or more: A. toilet paper B. automobile tires C. cigarettes D. sweet potatoesHow does a tax on a good affect the price paid bybuyers, the price received by sellers, and the quantitysold?
- Can you explain what happens when a tax is imposed on the buyer of a product and also what would happen if a tax is imposed on the seller? If a tax of 75¢ a cup is introduced, what is the price of a cup of coffee and how much coffee is bought? Who pays the tax?Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 Some economists believe that a sales tax, in general, is undesirable. Explain. Despite this, why do most countries still impose a tax on cigarette? Explain plausible arguments.
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