Missouri is often noted for having the lowest gasoline tax (a type of excise tax) in...
Missouri is often noted for having the lowest gasoline tax (a type of excise tax) in the nation. Graphically show using supply and demand analysis the impact of raising this tax to society
Homework Answers
Raising taxes on gasoline pushes the prices of petrol up and also makes combustible engines look more costly as the higher prices is passed onto consumers due to tax burden which causes negative implications and lower aggregate demand.
The excess burden of taxes causes deadweight losses to consumer as prices first rise and then fall subsequently when supply too falls and thus output quantity of gasoline also falls with falling prices.
Add Answer to:
Missouri is often noted for having the lowest gasoline tax (a
type of excise tax) in...
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...
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...
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...
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...
Hello, I am very confused with the below noted question. Mayor Emanuel expresses his desire to...
Hello, I am very confused with the below noted question. Mayor Emanuel expresses his desire to raise the minimum wage for adults 18 and over from $8.25 to $13.00 per hour. To simplify the analysis, let’s assume that prior to this change in the law, the current labor market for unskilled workers was in equilibrium at $8.25 per hour. Question 1 Draw a graph depicting the current labor market for unskilled labor, with the quantity of unskilled labor (L) on...
Gas prices fluctuate often and in both directions. In your initial post, respond to the following:...
Gas prices fluctuate often and in both directions. In your initial post, respond to the following: How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline impact the effectiveness of taxes on gasoline aimed at correcting a negative externality? Consider incorporating the supply-and-demand model to demonstrate the elasticity of...
CHAPTER 6: TAXES AND SUBSIDIES 1. What is the purpose of a tax? Whas dous imposing...
CHAPTER 6: TAXES AND SUBSIDIES 1. What is the purpose of a tax? Whas dous imposing a tax do to your behavior? What is the tax wedge? Be able to use it to determine the impact of a tax on a given market. Especially as it pertains to the price paid by the buyer and the price received by the seller. 3. If a tax is imposed, say on chewing gum, be able to show/understand how it affects the market...
Question 1: Suppose the Australian market for uranium ore concentrate is characterized as follows: Market Supply:...
Question 1: Suppose the Australian market for uranium ore concentrate is characterized as follows: Market Supply: Q = 0.5P − 40 and Market Demand: Q = 50 − 0.1P, where P is measured in Australian dollars per kiloton of uranium ore concentrate and Q is measured in kilotons of uranium ore concentrate per day. Using this information, answer the following questions. Part (b) Suppose that after thorough analysis of the Australian market for uranium ore concentrate, the government concludes that...
Complete all problems. 75 point points total. A possible 7 extra credit points. Please type all...
Complete all problems. 75 point points total. A possible 7 extra credit points. Please type all prose responses and produce clean graphs wherever appropriate. Generous use of graphs encouraged. Show all work for algebra. Powerpoint is one good tool for making clean graphs. 1. Suppose there is a sudden increase in the price of crude oil. a. How will this change the equilibrium price and quantity in the market for gasoline? (2 points) b. Based on your answer in part...
OPS Practice quiz 2. The benefits of risk pooling depend on the behavior of demand from...
OPS Practice quiz 2. The benefits of risk pooling depend on the behavior of demand from one market relative to demand from another. True False 3. What is Supply Chain Management? A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores so that merchandize is produced, distributed at the right quantities, to the right locations and at the right time in order to minimize system wide costs while satisfying service level requirements. The management of the flow...
CHAPTER 6: TAXES AND SUBSIDIES 1. What is the purpose of a tax? Whas dous imposing a tax do to your behavior? What is the tax wedge? Be able to use it to determine the impact of a tax on a given market. Especially as it pertains to the price paid by the buyer and the price received by the seller. 3. If a tax is imposed, say on chewing gum, be able to show/understand how it affects the market...
Complete all problems. 75 point points total. A possible 7 extra credit points. Please type all prose responses and produce clean graphs wherever appropriate. Generous use of graphs encouraged. Show all work for algebra. Powerpoint is one good tool for making clean graphs. 1. Suppose there is a sudden increase in the price of crude oil. a. How will this change the equilibrium price and quantity in the market for gasoline? (2 points) b. Based on your answer in part...
Most questions answered within 3 hours.
-
An island economy consumes only jellybeans, running shoes,
Pepsi, and Vanilla ice compact discs. The base...
asked 1 minute ago -
On September 1, Ziegler Corporation had 50,000 shares of $5 par
value common stock, and $1,500,000...
asked 2 minutes ago -
A few random results for you to ponder…do the results justify
the conclusions? Why or why...
asked 16 minutes ago -
5. The developer of a new welding rod claims that spot welds
using his product will...
asked 13 minutes ago -
Which of the following is the most accurate description of how a
sound wave propagates?
a)...
asked 15 minutes ago -
Before the final distribution of cash, account balances are:
Cash $23,000; S. Penn, Capital $19,000 (Cr.);...
asked 20 minutes ago -
On May 1, Sequoia Inc. issued 30,000 shares of its common stock
with a $15 par...
asked 21 minutes ago -
For Python 2.7.8, Write a program that defines
a function that prints a short poem or...
asked 21 minutes ago -
An optical disk drive in your computer can spin a disk up to
10,000 rpm (about...
asked 32 minutes ago -
Is the purpose of lightning rods to attract lightning?
asked 40 minutes ago -
Let A be an event included in S that is independent of itself.
Then we have:...
asked 40 minutes ago -
The Adverse Childhood Experiences (ACE) Study has had a great
impact on moving psychologists to be...
asked 37 minutes ago