The next few questions are about this generic market with a negative consumption externality. Fill in the welfare table below with the areas associated with each welfare measure. P S A в 1 D E H MSB
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A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.
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- 18. The U.S. Senate is considering a bill that would tax the sale of laptop computers in order to fund a computer educa- tion program for presidential hopefuls. The Congressional Budget Office (CBO) estimates that if it implements a low tax of $12 per laptop, revenue should be sufficient to exactly fund the program. The CBO also estimates that a high tax of $230 per laptop will exactly fund the program. a. How can a low tax and a high tax raise exactly enough money to fund the program? Illustrate your answer using a graph. b. Suppose that you are an economic advisor to the Senate Finance Committee, tasked with analyzing the economic impact of the tax proposals. Which proposal do you recommend, and why?(a) Show the market for housing in equilibrium on a diagram, where demand is less elastic than supply, andlabel the respective consumer and producer surpluses. Discuss whether this market is Pareto efficient. (b) Assume that the State Government imposes a per-unit tax on the sellers of houses. A new diagram,shows the imposition of this tax on the market for housing. Does the imposition of this tax cause a Paretoimprovement to the market, explain? (c) Is the tax imposed in part (b) effective for the collection of Government revenue? Justify your answer withreference to your diagram in part (b).Ifilled my ENTIRE BATHTUB with O Income #3 Income Lesson Three: Taxes and x My Questions | bartleby Up to 90% Off at Bartleby b jaeeproddatalake. blob.core.windows.net/pam-cms-files/RESOURCES/7722a483-2f4c-4517-8ff0-7245267 ddd2b.pdf Q < * O cms.k12.nc.us bookmarks Women's Sneakers. O YouTube G Demo document M Charlotte Mecklenb. Aaliyah Williams -. O STUDENT NEARPO. O Mail - Aaliyah Willia. I Other bookmarks E Reading list Income Lesson Three: Taxes and My Income 5 / 5 74% +| 8 O Paycheck Calculations Using the information below, calculate each worker's net monthly income (NM). GAI is gross annual income, and GMI is gross monthly income. 2 Jamal works at the recreation center 15 hours a week during the school year. He eams $8.75 an hour. In a typical month, he works 63 hours. Calculate his monthly taxes below. what A T Cv Gross Monthly Income Monthly Federal Income Tax (10%) Monthly Social Security (FICA) (6.2%) Monthly Medicare (1.45%) S. S. Monthly State Tax (4%) Monthly Local Tax…
- The demand for cigarettes, which create negativeexternalities through secondhand smoke, is oftenrelatively inelastic. That is, when the price of cigarettes changes, the quantity demanded changes bya smaller portion. Using this fact, explain to whatextent you think a tax on cigarettes would fulfilleach of the goals of taxation.A technology change shts the inverse eply function from 1+3y to p1+g verse demand is p21- Which of the following statements are te in epubrium 1 Producer surplua inoreases Gtion8 2 Consumer surplus increases 3 Ouantity doubles a None 1 and 2 C 12 and 3 d 1 and 3 Vour aner ie inconect The conect aswer 12 and 3 The government wanta to impose a $3 per unit tax on sugar to reduce sugar consumption. is known that tases wil result in a deadweight los Given the supply function is -3p. which of the folowing inverse demand function will result in the smalest deadweight loss? Guesti9 000 p out a Insufficient information to conclude p-700-24 p-1000-3y TUur answera inconecSuppose the government removes a tax on buyers of a good and levies a tax ofthe same size on sellers of the good. How does this change in tax policy affectthe price that buyers pay sellers for this good, the amount buyers are out ofpocket including the tax, the amount sellers receive net of tax, and the quantityof the good sold?
- Suppose Jolene buys apples weekly. If the price of apples were to drop, Jolene would experience in . a decrease an increase a decrease an increase a decrease total revenue consumer surplus her budget constraint marginal utility willingness to pay Suppose the government levies a tax of $0.50 per pack on the buyers of cigarettes. Suppose also that the price elastic- ity of demand for cigarettes is 1.2 and the price elasticity of supply is 0.7. Because this tax is levied on the sale of a specifi c good, it is an excise tax. a progressive tax. a regressive tax. a proportional tax. a lump-sum tax. After this tax is levied, total surplus will , and the price received by producers (not including the tax) will . increase decrease increase decrease increase increase by exactly $0.50 fall by exactly $0.50 fall by less than $0.50 fall by less than $0.50 increase by more than $0.50 If economists were to study the tax incidence in this cigarette market, they would…Heip m/ultra/courses/_165411_1/cl/outline lyLab M... W WordCounter 5 Quizlet * Question Completion Status: QUESTION 13 Figure 6-25 1ice 10 Is 6. 4 1 Daftertade 10 20 30 40 50 60 70 80 quantity Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is O a. $5. O b.$2. Oc. $1. O d. $6. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers tvThis chapter analyzed the welfare effects of a tax on agood. Now consider the opposite policy. Suppose thatthe government subsidizes a good: For each unit of thegood sold, the government pays $2 to the buyer. Howdoes the subsidy affect consumer surplus, producersurplus, tax revenue, and total surplus? Does asubsidy lead to a deadweight loss? Explain.
- Suppose the government removes a tax on buyers ofa good and levies a tax of the same size on sellers ofthe good. How does this change in tax policy affectthe price that buyers pay sellers for this good, theamount buyers are out of pocket (including any taxpayments they make), the amount sellers receive (netof any tax payments they make), and the quantity ofthe good sold?1 t The data describes the market for luxury boats. Now the government puts 20 percent tax on luxury boats. With the tax imposed, the price of a luxury boat is OA. $330 million OB. $1.10 million OC. $0.20 million D. $1.20 million OE. $1 million a With the 20 percent tax on luxury boats, OA. the buyer pays all of the tax. OB. the buyer and the seller split the tax evenly. OC. the tax reduces the quantity of luxury boats sold to zero, so there is no tax. OD. it is impossible to say how the tax is split between the buyer and seller. OE. the seller pays all of the tax. 9 The government raises tax revenue of s Z 2 W S 3 e d millinn. AOC с C с $ 4 r f % 5 v t 6.0 Oll 6 3 b y h The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $1 million and 330 luxury boats a week are bought. & 7 u 1.60 1.40 1.20 1.00+ 0.80+ Q n 132 j Price (millions of dollars per boat) 198 264 330 Quantity (boats per week) sss Draw…Energy drinkS has been causing death.because of consumpti on Senator Miller proposes $ 2 tax ( that on average cost $ 2.:5D) on the arinks. Senator cruz thinks IK too high. In response, the Miller Bill was fixed to make it a $ 1 tax. 1. DRALD A CRAPH. LOcate the tax Ruene and indicate which letterd rgions show that on the graph. Does the concumer or producer pay more ot the tax 2