You are also considering imposing a tax per unit of $5 to be imposed on the...
You are also considering imposing a tax per unit of $5 to be imposed on the consumption of soda beverages. What will be the new equilibrium quantity, price paid by the students (demand), and price received by the soda beverage supplier. What is the tax burden per unit on consumer and on the supplier, and what is the tax revenue collected by the government? Consider P=30-Q as demand and P=4Q as supply. (calculation only)
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You are also considering imposing a tax per unit of $5 to be
imposed on the...
UNIT 5 – QUESTION 2 (25 marks) Given the following information: Demand: Qd = 200 –...
UNIT 5 – QUESTION 2 (25 marks) Given the following information: Demand: Qd = 200 – 5P Supply: Qs = 5P If a quantity tax of $2 per unit sold is imposed, (a)Considering that the government will earn revenue, overall, do you think that the society benefits from the imposition of the tax? Explain. (b) Calculate the equilibrium market price and the equilibrium quantity sold. (c) Determine the demand and supply equation after the tax. (d) What will be the...
Consider a market for apple with the following supply and demand. Qs = 2 + p...
Consider a market for apple with the following supply and demand. Qs = 2 + p Qd = 20 p (a) What is equilibrium supply and demand in this market? The government imposed ad-valorem tax of 20% tax rate which is collected from the seller. We want to calculate buyerís burden, sellerís burden, and total tax revenue. Answer the following questions in steps to calculate them. (b) Suppose the tax rate is t. When market price is p, what is...
Consider a market for apple with the following supply and demand. Qs = 2 + p...
Consider a market for apple with the following supply and demand. Qs = 2 + p Qd = 20 p (a) What is equilibrium supply and demand in this market? The government imposed ad-valorem tax of 20% tax rate which is collected from the seller. We want to calculate buyerís burden, sellerís burden, and total tax revenue. Answer the following questions in steps to calculate them. (b) Suppose the tax rate is t. When market price is p, what is...
ECONOMICS IN PRACTICE Soda Beverage Choice Many countries have started imposing a tax on soda bev...
ECONOMICS IN PRACTICE Soda Beverage Choice Many countries have started imposing a tax on soda bev erages as a measure to raise revenue as well as to prevent obesity. You may expect that as the taxes reduce soda bever age consumption, the revenue raised would also decrease However, the government tax policy is always effective: this is because either the tax effectively reduces soda beverage consumption or if the consumption doesnt decrease, t government raises huge revenue from the tax....
the(sellerg of certain 1. The Korean government is considering imposing taxes on classes of products. The...
the(sellerg of certain 1. The Korean government is considering imposing taxes on classes of products. The first tax they are considering is a tax on rice. The second is a tax on all grains including rice, barley, wheat and corn. The third is a tax on all food products. Assume that the price elasticity of supply is the same for all food products but the price elasticity of demand varies. Please answer to the following questions by drawing the demand...
2. Assume a $1 per unit tax is imposed on a market. [a] Under what...
2. Assume a $1 per unit tax is imposed on a market. [a] Under what [i] price elasticity of demand [PED] and [ii] price elasticity of supply [PES] circumstances will this tax cause the largest deadweight loss [DWL] in a market? [i] [ii] [b] Under what [i] PED and [ii] PES circumstances will this tax cause the smallest gain in government tax revenue in the market? [i] [ii] [c] Under...
3. Assume that there is a $14 tax imposed on the consumer, find the new equilibrium...
3. Assume that there is a $14 tax imposed on the consumer, find the new equilibrium price and quantity, р Find the portion of the tax paid by the producer and the portion of the tax paid by the consumer, and Consumer Producer Find the tax revenue generated for the government. Total Tax 4. Which scenario is best for the government and why? y me + b R(q) - Price Quantity m - - - y - y = m(x-x)...
Suppose the original before-tax demand curve for boks is P = 100 -2Qd. Suppose further that...
Suppose the original before-tax demand curve for boks is P = 100 -2Qd. Suppose further that supply is P = 5 + 3Qs. Now suppose a quantity tax of $5 per unit is imposed on consumers. A) What is the before-tax equilibrium price and quantity? B) What is the after-tax equilibrium quantity? What is the price received by producers? What is the price paid by consumers? C) How much tax revenue is raised? D) Calculate the excess burden created by...
Price (dollars per case) The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2...
Price (dollars per case) The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. The sellers of no-name soda end up paying the entire tax. Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by sellers O...
Refer to Figure 1. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market
QUESTION #1 Refer to Figure 1. Suppose a $3 per-unit tax is
imposed on the sellers of this good. How much is the burden of this
tax on the buyers in this market? What price will buyers pay for
the good after the tax is imposed? Explain clearly.QUESTION #2 Refer to Figure 1. Suppose a $3 per-unit tax is
imposed on the sellers of this good. How much is the burden of this
tax on the sellers in this market? What is...
ECONOMICS IN PRACTICE Soda Beverage Choice Many countries have started imposing a tax on soda bev erages as a measure to raise revenue as well as to prevent obesity. You may expect that as the taxes reduce soda bever age consumption, the revenue raised would also decrease However, the government tax policy is always effective: this is because either the tax effectively reduces soda beverage consumption or if the consumption doesnt decrease, t government raises huge revenue from the tax....
the(sellerg of certain 1. The Korean government is considering imposing taxes on classes of products. The first tax they are considering is a tax on rice. The second is a tax on all grains including rice, barley, wheat and corn. The third is a tax on all food products. Assume that the price elasticity of supply is the same for all food products but the price elasticity of demand varies. Please answer to the following questions by drawing the demand...
3. Assume that there is a $14 tax imposed on the consumer, find the new equilibrium price and quantity, р Find the portion of the tax paid by the producer and the portion of the tax paid by the consumer, and Consumer Producer Find the tax revenue generated for the government. Total Tax 4. Which scenario is best for the government and why? y me + b R(q) - Price Quantity m - - - y - y = m(x-x)...
Price (dollars per case) The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. The sellers of no-name soda end up paying the entire tax. Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by sellers O...
QUESTION #1 Refer to Figure 1. Suppose a $3 per-unit tax is
imposed on the sellers of this good. How much is the burden of this
tax on the buyers in this market? What price will buyers pay for
the good after the tax is imposed? Explain clearly.QUESTION #2 Refer to Figure 1. Suppose a $3 per-unit tax is
imposed on the sellers of this good. How much is the burden of this
tax on the sellers in this market? What is...
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