The Australian government have suggested that they might need to increase GST to help fund the COVID-19 rescue package. GST is a tax on goods and services usually paid at the point of sale. Consider the market for bread. Suppose a loaf costs $4.15 and includes a 15-cent tax per loaf. q3- Suppose that at a price of $4.15 eight hundred loaves are sold and when the tax is increased to 20 cents seven hundred loaves are sold. Calculate the total tax revenue for the government before and after the change in the tax rate.
The Australian government have suggested that they might need to increase GST to help fund the COVID-19 rescue package. GST is a tax on goods and services usually paid at the point of sale. Consider the market for bread. Suppose a loaf costs $4.15 and includes a 15-cent tax per loaf. q3- Suppose that at a price of $4.15 eight hundred loaves are sold and when the tax is increased to 20 cents seven hundred loaves are sold. Calculate the total tax revenue for the government before and after the change in the tax rate.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 4QP
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The Australian government have suggested that they might need to increase GST to help fund the COVID-19 rescue package. GST is a tax on goods and services usually paid at the point of sale. Consider the market for bread. Suppose a loaf costs $4.15 and includes a 15-cent tax per loaf.
q3- Suppose that at a price of $4.15 eight hundred loaves are sold and when the tax is increased to 20 cents seven hundred loaves are sold. Calculate the total tax revenue for the government before and after the change in the tax rate.
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