xyz has immense demand function p=30-Q and marginal cost of MC=Q . suppose the government introduces a tax = 3.5@ the efficiency level of production the equilibrium after tax the tax burden the excess tax burden
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xyz has immense demand function p=30-Q and marginal cost of MC=Q . suppose the government introduces a tax = 3.5@
- the efficiency level of production
- the equilibrium after tax
- the tax burden
- the excess tax burden
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- Give typing answer with explanation and conclusion The burden of a sales tax will fall primarily on businesses because sales tax is collected from businesses. true or false?Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080-7P --120+3P Suppose now that government iniposes S60 tax per unit of output on sellars. What is the tax revenue for the govemment at the equilibrium? 7200 7320 6840 6000Consider an ad-valorem tax on a good X. The Demand for good X is constant elasticity with elasticity -2. The Supply for good Y is constant elasticity with elasticity 3. Consider the same setting as for the previous question. When a tax of 1% of the price is imposed on good X, then equilibrium quantity of X exchanged declines by what percentage?
- Discuss the effects of indirect taxes on producers.Consider a family that carns $120,000 per year, pre-tax. Suppose their marginal tax rate on income is 25%. The government is considering raising the tax rate to 40%. Suppose that the clasticity of taxable income is 0.5. What would the change in deadweight loss arising from this tax increase be?Now calculate the government's tax revenue if it sets a tax of $0, $2, $4, 55, 56, 58, or $10 per pack. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 200 180 160 140 120 100 40 20 o 3 TAX (Dolars per pack) 10 A Laffer Curve
- Assume that the Demand Function is P = 16250 - 6Q and Supply Function is P = 2000 + 3Q, a tax of P1200.00 is imposed by the government to the producers. (Graph items 1-5) 1. Whatis the Ps? 2. Whatis the Pb? 3. Compute for the DWL. 4. How much taxc is paid by the Suppliers? 5.How much tax is paid by the consumers?After the pandemic, if the city of Pasadena increased sales tax by 1% to help pay for some of the economic recovery efforts, this would be considered a O Proportional tax O Headcount tax O Progressive tax O Regressive taxAssume the market for good Y is in equilibrium. (a) Draw a correctly labeled demand and supply graph for good Y. Label the equilibrium price PePe and the equilibrium quantity QeQe. (b) Assume the government imposes a per-unit tax on good Y. On your graph in part (a), show each of the following after the tax has been implemented. (i) The equilibrium price labeled PNPN and the equilibrium quantity labeled QNQN (ii) The area representing the change in consumer surplus, shaded completely (c) Will the price paid by consumers increase by the same amount as the tax? Explain. (d) Will the loss in consumer and producer surplus be greater than, less than, or equal to the tax revenue collected by the government? Explain.
- refer to the graph shown. given the same supply elasticity, the burden of a 10 percent tax would be borne the most by the consumer in segFind out NIT if indirect tax is $72 and subsidies $40?Supply fucntion: QS=200P-700 Demand function: Qd=3000-100p If a goverment want to reduce the quantity of units sold to 500, what is the price per unit tax?