If a government simplified its tax system the likeliest result would be Group of answer choices a decrease in consumer surplus. a decrease in producer surplus. a decrease in deadweight loss. a decrease in tax revenues

Q: Consumer surplus is at maximum level when the government imposes tax on a good or service  True /…

A: # Consumer surplus occurs when the buyer's willingness to pay is higher than the market price of the…

Q: In many countries, income earned from financial investments is taxed at a higher rate than income…

A: The answer and correct explanation for the given question is as follows:-

Q: Suppose that a central government levies a new tax called “garbage tax” on all households of the…

A: Taxes are the required payments to the government without expecting any direct return or profit.…

Q: When supply and demand are equally elastic:     producers carry the majority of the tax…

A: When supply and demand elasticities are same, the tax burden borne by both buyers and sellers are…

Q: A $1 tax per unit on producers will cause   Question 3 options:   None of the other answers are…

A: Tax on producers leads to decrease in supply of the good.

Q: Sarah Marshall pays her state taxes each year and lives in a mansion in Westlake. The taxes are used…

A: Here, it is given that state taxes paid by Sarah Marshall are used to contribute as the funds for…

Q: As a result of the tax,     consumer surplus decreases from $200 to $80.     producer surplus…

A: Taxation results in reduction of consumer surplus and producer surplus and also introduces a dead…

Q: Which of the following is an example of a progressive tax? Group of answer choices All of the above…

A: Progressive tax can be defined as the tax burden which increases with increase in income of the…

Q: If demand is steeper than supply, this means that Select the correct answer below: producers pay a…

A: consumers pay a larger proportion of tax Option 2nd is correct. Consumers will bear more of the tax…

Q: Which of the following is the best description of “deadweight loss”? A. The decrease in total…

A: Deadweight loss is a cost to the society which is because of inefficiency in a market.

Q: The use of raw materials is an important element of the non-price determinant known as    a.…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: A specific tax on sellers will *       a)shift the supply curve to the right.       b)shift the…

A:

Q: Once the government imposes a Tax per unit sold in a market, the following will occur, EXCEPT:…

A: Per unit tax is a fixed amount charged by the government for each unit of good being sold.

Q: Refer to A-2. The supply curve S1 and the demand curve D show the initial market equilibrium for the…

A: Given the information: The amount of tax = $0.25 per bottle Initial equilibrium price = $1.80…

Q: Horizontal fiscal externalities can lead to inefficiently low tax rates when tax bases are mobile,…

A: Statement 1:For example, the horizontal tax competition suggests that the expectation that a mobile…

Q: Based on the attached equation. Determine (a) Consumer’s Surplus after tax (b) Producer’s Surplus…

A: Answer to the three sub parts are as follows :

Q: Calculate the the following: consumer surplus before tax producer surplus before the tax consumer…

A: Consumer surplus is calculated by finding the area below the demand curve and above the price.…

Q: A tax on of $1 per kg on the buyers of sugar will cause Select one: a. the demand curve to shift…

A: A tax on sellers or buyers would lower the surplus earned by both buyers and sellers. This in turn…

Q: Economists disagree on whether labor taxes cause small or large deadweight losses. This disagreement…

A: The tax is a unilateral payment made by the people towards the government for various purposes such…

Q: The excess burden is an increasing function of a tax. True, false or uncertain: the excess burden of…

A: As the rate of tax increases, its burden on the one bearing it rises and thus it can be rightly said…

Q: Question 26     Suppose the government puts a cigarette tax of $ 1 per pack.  In response to this…

A: We are going to explain and answer how to calculate tax burden on consumer to answer this question.

Q: Please refer to the description of a tax on a market, represented by the graphic Consumer surplus…

A: Consumer surplus is that area which are lies below the demand curve and above the price level.

Q: Select all that apply. Economic surplus is consumer surplus and producer surplus net a firms profit.…

A: As we know that market price is determined when demand and supply are equal at certain price and…

Q: Question 6 Logrolling refers to 1) choosing political platforms to appeal to special interests. 2)…

A: In an economy, government plays a significant role in improving the health of the economy due to…

Q: A tax that takes a smaller percentage from high-income earners than it does from low-income earners…

A: There are different types taxes, regressive, progressive and proportional

Q: Minnesota and Tennessee, among other states, have recently begun to tax the sales of healthcare…

A: Burden of the tax does not depend on who it is being imposed on it rather depends on the elasticity.…

Q: Economists James Buchanan and Gordon Tullock are well-known for developing Group of answer choices…

A: Both the economist developed public choice model in which choices of public were analyzed.

Q: How does a Tax on Production affect a negatively sloped Demand curve or the Supply Curve? The supply…

A: When there is a change in the price of good, it makes movement along the demand or supply curve.…

Q: If the state government would like to increase tax revenue, please give three examples of…

A: In order to comprehend the burden and incidence of taxes, two key concepts are elasticity and taxes.…

Q: The burden of a tax on a good is said to fall completely on the producers if the: Select one: a.…

A: Tax is the amount that is levied on the income it is bared by both consumer and producer as both…

Q: Question: A tax is imposed on a certain good, and it produces revenue of $5,000 for the government.…

A: Given:  Total Revenue = $5000 Reduction in Consumer Surplus = $3000 Reduction in producer surplus =…

Q: How a tax burden is divided between consumers and producers is called tax incidence. Consumers bear…

A: Tax incidence depends on price elasticity of demand and supply.

Q: Per-unit tax   Equilibrium quantity after tax   Price consumers pay after tax

A: Per unit tax is  a specific tax which has to be paid for each unit of goods and services sold.  From…

Q: Tax Incidence

A: Tax is primarily the income of the government. It will be levied on the people.

Q: The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of…

A: Taxes are part of the government revenue and it will implement in various forms.

Q: When a good is taxed, the side of the market with fewer good alternatives cannot easily leave the…

A: The size of the tax burden depends on the availability of substitutes for the good.

Q: Question 18 When a tax is imposed, consumer surplus and producer surplus are reallocated to tax…

A: A tax reduces both consumer and producer surplus.

Q: A tax targeted to reduce consumption of a good by a specific quantity will raise the most revenue…

A: A tax targeted to reduce consumption of a good by a specific quantity will raise the most revenue…

Q: Assume that the graphs show a competitive market referenced in the question below.   Select the…

A: In a competitive market, equilibrium is achieved at a point where demand curve intersects supply…

Q: Which is the following is an example of a proportional tax?     Multiple Choice   an alcohol tax…

A: Taxes are defined as a form of compulsory charge which is taken by the government of a country from…

Q: deadweight loss because Select the correct answer below: the price consumers pay and producers…

A:

Q: If a new excise tax (a tax on the seller) is imposed on steak, Select one: a. market price of steak…

A: Excise tax is a tax on sellers and is paid by sellers.

Q: A proportional tax is a tax for which people with lower incomes   Group of answer choices A. pay a…

A: Answer: Correct option: (A) Explanation: A proportional tax is called a flat tax because here the…

Q: Two of the primary purposes of taxes are to fund the government and mitigate the negative effects of…

A: Taxes are described as a type of obligatory charge levied by a country's government on its…