Choose the answer: If a tax of 4 cents per gallon of milk is increased to...
Choose the answer: If a tax of 4 cents per gallon of milk is increased to 6 cents, the unrecoverable loss of tax efficiency: a)It increases by less than 50% and may even reduce. b)Increase by exactly 50%. c)Increase by more than 50%. d)It depends on the elasticity of demand.
Homework Answers
The unrecoverable loss of tax efficiency is the “dead weight loss” of taxation. Now, as tax increases then definitely “dead weight loss” will increase but the extent of increase depends on the elasticity of demand. So, here the correct answer is “D”.
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Choose the answer: If a tax of 4 cents per gallon of milk is increased to...
Do you care whether a 15c tax per gallon of milk is collected from milk producers...
Do you care whether a 15c tax per gallon of milk is collected from milk producers or from consumers at the store? Why? As a consumer, you O A. do not care how the tax is applied because the after-tax price will be the same. O B. do not care how the tax is applied because consumer incidence is always zero. O C. do not care how the tax is applied because consumer incidence is only determined by the elasticity...
David's gasoline station offers 4 cents off per gallon if the customer pays in cash and...
David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one-hour period, 15 customers buy gasoline at this station. What is the probability that more than 8 and less than 12 customers pay in cash?
Suppose that the government imposes a $10 tax on sellers of Humbugs. The pre-tax price of...
Suppose that the government imposes a $10 tax on sellers of Humbugs. The pre-tax price of Humbugs was $50. If, at the original equilibrium price, the elasticity of demand was 2 and the elasticity of supply was 15, which of the following is true? The equilibrium quantity of Humbugs will not change. The full amount of the tax will be paid by buyers. Sellers will pay relatively more of the tax than buyers. Buyers will pay relatively more of the...
Will rate!! Show good steps plz 24) A small economy increased its capital per hour worked...
Will rate!!
Show good steps plz
24) A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, 24) real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour worked from $50,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change? A) Output per worker will fall by more than $5,000. B) Output...
Hello, this is a Micro Economic problems Could you please be kind enough and solve all of problems with the explanation in detail? Thank you and have a good one! 1. Suppose a firm has market power an...
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Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon varies based on the seasonal blend of gasoline, which is determined by clean-air requirements, and Cal's pricing choices are limited to the profit margin for his price. Base price of unleaded regular delivered in New York harbor (Sept 2018 060 Added cost to Cal: 0.335 0.184 0.090 0.030 He recently raised the...
I need help solving this Asap. thanks alot. Figure 1: Supply and Demand in the Market...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/unit) 35 27 Supply 23 19 15 13 11 9 Demand 5 13 17 Quantity (units) 11 12 10 8 6 14. Refer to Figure 1. At the market equilibrium, total consumer surplus is $10 b. $50 а. $100 d. $200 15. Refer to Figure 1. Holding the supply curve fixed, assume demand increased, which caused the equilibrium price to...
Suppose that the government of China decided to impose a per unit tax on the suppliers of salt. (a) Using a supply and d...
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Question 4. Choose the correct answer for each of the following 1) The above figure shows...
Question 4.
Choose the correct answer for each of the following
1) The above figure shows the supply
and demand curves for rice in the U.S. and Japan. Assume there is
no trade between the two countries. If bad weather causes the
supply curves in each country to shift leftward by the same amount,
then
the price will increase in both countries.
the price will decrease in both countries.
the change in price cannot be determined.
None of the above....
1. If both China and Nigeria set a tariff of 10% per unit of soybeans imported...
1. If both China and Nigeria set a tariff of 10% per unit of soybeans imported from the US, what would be your expectation owith respect to the domestic price of soybeans in China and Nigeria? a. Domestic price in China will rise by more than 10% while domestic price in Nigeria will rise by exactly 10% b. Domestic price in China will rise by less than 10% while domestic price in Nigeria will rise by more than 10% c....
Do you care whether a 15c tax per gallon of milk is collected from milk producers or from consumers at the store? Why? As a consumer, you O A. do not care how the tax is applied because the after-tax price will be the same. O B. do not care how the tax is applied because consumer incidence is always zero. O C. do not care how the tax is applied because consumer incidence is only determined by the elasticity...
Suppose that the government imposes a $10 tax on sellers of Humbugs. The pre-tax price of Humbugs was $50. If, at the original equilibrium price, the elasticity of demand was 2 and the elasticity of supply was 15, which of the following is true? The equilibrium quantity of Humbugs will not change. The full amount of the tax will be paid by buyers. Sellers will pay relatively more of the tax than buyers. Buyers will pay relatively more of the...
Will rate!!
Show good steps plz
24) A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, 24) real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour worked from $50,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change? A) Output per worker will fall by more than $5,000. B) Output...
Hello, this is a Micro Economic problems Could you please be kind enough and solve all of problems with the explanation in detail? Thank you and have a good one! 1. Suppose a firm has market power and faces a downward sloping demand curve for its product, and its marginal cost curve is upward sloping. If the firm reduces its price, then: A) consumer and producer surplus must increase. B) consumer surplus increases, producer surplus may increase or decrease. consumer...
Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon varies based on the seasonal blend of gasoline, which is determined by clean-air requirements, and Cal's pricing choices are limited to the profit margin for his price. Base price of unleaded regular delivered in New York harbor (Sept 2018 060 Added cost to Cal: 0.335 0.184 0.090 0.030 He recently raised the...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/unit) 35 27 Supply 23 19 15 13 11 9 Demand 5 13 17 Quantity (units) 11 12 10 8 6 14. Refer to Figure 1. At the market equilibrium, total consumer surplus is $10 b. $50 а. $100 d. $200 15. Refer to Figure 1. Holding the supply curve fixed, assume demand increased, which caused the equilibrium price to...
Question 4.
Choose the correct answer for each of the following
1) The above figure shows the supply
and demand curves for rice in the U.S. and Japan. Assume there is
no trade between the two countries. If bad weather causes the
supply curves in each country to shift leftward by the same amount,
then
the price will increase in both countries.
the price will decrease in both countries.
the change in price cannot be determined.
None of the above....
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