We understand that an excise tax will result in a difference between the price the consumers pay and the (net) price the firm keeps for each unit. Often, this results in a “disruption” in the market as equilibrium output decreased. For this example, suppose we look at the market for land and let’s assume that the supply of land is fixed (I realize that some countries have “reclaimed land from the sea,” but lets ignore those) and the supply curve is perfectly vertical but the demand curve has conventional downward slope.
a) the graphical representation is shown in fig-1.
b) fig-2 represents that the equilibrium price will decrease and seller will have to bear the tax as the supply curve is perfectly inelastic.
c) the property tax is less distortionary tax because it does not change the behavior and is considered as more growth friendly. This tax is imposed more on those people more who possess high property portion which is a regressive tax and those who has high wealth will be taxed only. Whereas people with lower wealth will not have to bear the tax.
We understand that an excise tax will result in a difference between the price the consumers...
We understand that an excise tax will result in a difference between the price the consumers pay and the (net) price the firm keeps for each unit. Often, this results in a “disruption” in the market as equilibrium output decreased. For this example, suppose we look at the market for land and let’s assume that the supply of land is fixed (I realize that some countries have “reclaimed land from the sea,” but lets ignore those) and the supply curve...
We understand that an excise tax will result in a difference between the price the consumers pay and the (net) price the firm keeps for each unit. Often, this results in a “disruption” in the market as equilibrium output decreased. For this example, suppose we look at the market for land and let’s assume that the supply of land is fixed (I realize that some countries have “reclaimed land from the sea,” but lets ignore those) and the supply curve...
We understand that an excise tax will result in a difference between the price the consumers pay and the (net) price the firm keeps for each unit. Often, this results in a "disruption" in the market as equilibrium output decreased. For this example, suppose we look at the market for land and let's assume that the supply of land is fixed (I realize that some countries have "reclaimed land from the sea," but lets ignore those) and the supply curve...
1-3 please Feel free to use any spaces for scratch work. 1) Consider the excise tax lectured in class. For a given excise tax, we can correctly predict that consumer tax incidence will be less than producer tax incidence when: a) Both the demand and the supply curves are more inelastic. b) The demand curve is inelastic and the supply curve is elastie. c) The demand curve is elastic and the supply curve is inelastic. d) Both the demand and...
The “dead-weight loss” from an excise tax… a. is greater if demand is perfectly inelastic. b. is caused by a shift in consumer preferences when the tax is raised. c. is the lost surplus that results from the higher price and lower output resulting from the tax. d. is of little concern to policy makers since all excise taxes are “sin” taxes. e. is the difference between consumer surplus and producer surplus. Flag this Question Question 62 pts Aaron is...
1) Must be stapled. I will not accept any loose sheets 1) Identify non-price factors that would cause the demand curve to move right or left. 2) Next, draw (individual graphs) indicating how each of the following non-price factors would cause the change in demand curve (shift right, shift left), price (P) and quantity (Q). You need to draw a market equilibrium curve (i.e. both the demand and supply) for each of the following before you can shift the demand...
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for wine in the United States. The orange (upward-sloping) line represents the supply curve of wine, and the blue (downward-sloping) line represents the market demand. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. The market is initially in equilibrium. Then the government institutes a $11.60 per bottle tax...
evens only 1. What is the difference between Change in quantity demanded and Change in demand? 2. True or false? As the price of oranges rises, the demand for oranges falls, ceteris paribus. Explain your answer 3. With respect to each of the following changes, identify whether the demand curve will shit rightward or leftward: a An increase in income (The good under consideration is a normal good) b. A nse in the price of a substtute good C. A...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this paper and some conclusions and contributes of this paper. I need this for my Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS PLEASE !!!) Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...