If the government decide to increase taxes on sugar, who do you think will carry the burden of taxation? Please justify your answer

Q: Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 20 million…

A: Tax refers to the compulsory payment that imposed by the government on consumer, individual people…

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: Seeing a golden opportunity to increase its revenue, assume the City of Boston has decided to levy a…

A: When a tax is imposed on every unit of quantity sold, then the tax burden is shared by the seller…

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: omplete the following table with the tax revenue collected and deadweight loss caused by each of the…

A: Total revenue is the total receipts from sales of a given quantity of products or services. It is…

Q: What can you say about Tax incidence in the Philippines, who carries the burden more? Give examples…

A: Tax incidence is an economic term for the distribution of tax burden between producers and sellers.…

Q: Draw a well labeled graph showing the impact of the tax. On whom does the tax burden fall--the teams…

A: The supply of tickets is 38,000. So  in the below diagram, a  tax amount which is paid by the…

Q: Which of the following statements are correct? The statutory or legal incidence of a tax determines…

A: The tax can be divided into two categories such as per unit tax and lumpsum tax. Any tax results in…

Q: If GDPMP of a country is 50 billion and product taxes are 2 billion while subsidies given are worth…

A: The gross domestic product (GDP) is the money or market value of all the finished goods and services…

Q: When the government levies a tax on a good, who actually bears the burden of the tax? The people…

A: When the tax is levied on the buyers, like the tax levied on the consumption of goods and services…

Q: Discuss the effects of indirect taxes on producers.

A: Effects of indirect taxes on producers Indirect taxes are the taxes levied on the goods and…

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 would happen if Texas collects less taxes and generates less revenue?

A: In an economy, it can be seen that the taxes are the major part or component of government revenue.

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

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 can you say about Tax incidence in our country, who carries the burden more? Give examples and…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: 22. If the government decide to increase taxes on sugar, who do you think will carry the burden of…

A: As sugar is a necessary, therefore, its demand is inelastic (i.e. with a change in the price of the…

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: Suppose the supply curve for cars is more elastic than the demand curve for cars.  If the government…

A: Tax incidence can be shifted only through sale and purchase transaction.  Share of tax borne by the…

Q: Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 35 billion…

A: In a competitive market, there exists a large number of buyers and sellers of the good in the…

Q: Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 35 billion…

A: With the imposition of tax, the price paid by consumer increases whereas the price received by…

Q: Supply of a good is more elastic than the demand for the good. Who will bear the larger burden of…

A: Taxation refers to per unit tax imposed by the government of the country on some particular goods or…

Q: True or false (explain why): To minimize the burden of taxation, it is better to levy large taxes on…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What are the civic implications of taxation?

A: Taxation refers to the economic factor that is used by the government to generate revenue and use…

Q: The figure below shows that the imposition of an indirect tax shifts the supply curve to the left.…

A: Tax Revenue is the revenue earned by the government by the impositional of taxes. TR=t*Q TR=Tax…

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: Demand is Q=60-2p, Supply is Q=3p. Government imposes a per value tax of τ on producers (so,…

A: When a tax is imposed, the price of the commodity increases. The buyers pay more for the same…

Q: Suppose that the supply of oil is elastic and demand for oil is inelastic. If the government taxes…

A: Buyers will bear most of the burden of tax.

Q: The government raises taxes on cigarettes from $1 per to $2 per pack. Prior to the tax increase, 5…

A: The government is a vital function that helps to maintain the stability of the economy. The…

Q: Identify whether the statements about the economics of taxes are true or false. a. An excise tax…

A: Identify whether the statements about the economics of taxes are true or false.   a. An excise tax…

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 are the cannons of taxation by Adam smith ?

A: Adam Smith suggested taxation to finance government activities. He has led down some rules for the…

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: Could you please explain in brief  why taxation is considered as the lifeblood of the state.

A: The nations tend to work with the goal to achieve the maximum possible level of growth. There are…

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: Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 10 million…

A: Given: Before the tax, 10 Million cases of cola were sold every month at a price of $4 per case.…

Q: Do you think taxpayers would be willing to pay higher property taxes if the revenue is earmarked for…

A: The practise of allocating tax or other revenues to a specific programme or purpose is known as…

Q: Which of the following is an example of a progressive tax?a. The excise tax on cigarettesb. The…

A: OPTION C - Federal Personal Income Tax A progressive tax is a tax where the tax burden increases…

Q: explain why taxation is considered as the lifeblood of the state

A: Taxation: It is a compulsory charge which is being levied on the individuals or groups by the state…

Q: How does elasticity affect the burden of a tax? Justify your answer using supply and demand…

A: The economic effect of taxation are manifold. This include micro effect on distribution of income…

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: Market for

A: Tax of 6/unit will raise the supply curve by 6.

Q: What can you say about Tax incidence in our country, who carries the burden more? Give examples and…

A: Tax incidence The economic cost of a tax is distributed among those who are impacted by it, which is…

Q: Consider a product that is fixed on supply QS=4 and the demand for the product is given by QD=…

A: Elasticity of demand is the % change in quantity demanded due to 1% change in price. Elasticity of…

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: QUESTION 1. With the help of a numerical example, explain why California and Maine tax cannabis by…

A: 1) The reason behind California and Maine tax cannabis by weight rather than by price is the…

Q: Suppose the California legislature passed a sweeping law to lower the number of regulations for…

A: In this case sweeping law will empowers California government to make necessary law and give proper…