Briefly discuss the effect of price elasticity of supply and demand on tax incidence. When the demand for a product is less elastic than supply, pay the majority of the tax on a product; when supply for a product is less elastic than the demand, pay the majority of the tax on the pre firms consumers

Q: Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30 billion…

A: here we calculate the given by following method as below;

Q: 25. Answer the following tax related questions. a. Consider a (per unit) tax on two different goods,…

A: In a market where the supply curve is inelastic, the DWL is smaller than the market where the supply…

Q: The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic.…

A: An excise tax is a tax on each unit of a commodity. Consumers and producers share the burden or…

Q: 9. Effect of a tax on buyers and sellers The following graph shows the dally market for jeans when…

A:

Q: Briefly explain what are direct tax

A: Taxes are categorised as direct and indirect tax based on who shares the final burde of the taxes…

Q: Draw a well labeled graph showing the impact of the tax. On whom does the tax burden fall--the teams…

A: The supply of tickets is 38,000. So  in the below diagram, a  tax amount which is paid by the…

Q: Then, draw the a supply and demand diagram for the beer market with the tax. Show in the graph, the…

A: Tax is the assortment of cash from the occupants of a country in unambiguous sums by the government.…

Q: In Virginia, in 2019, if you made $10,000 a year in income, you paid $120 +5% of excess over $5,000.…

A: There are different types of taxes imposed by the government on the basis of the type of transaction…

Q: It is known that Qd = 80-2P and Qs = -10 + P Question: a. Draw it in a graph! b. If the government…

A: Qd = 80-2P Qs = -10 + P

Q: how inelastic supply effect on tax

A: Taxes are defined as the amount of compulsory payment made to the government by the citizens of the…

Q: In Virginia, in 2019, if you made $10,000 a year in income, you paid $120 + 5% of excess over…

A: A tax is a necessary fee or a type of monetary charge that is imposed by a government on a person or…

Q: Suppose the price elasticity of demand for luxury boats is zero. Explain, with the use of a diagram,…

A: Price elasticity: It refers to the change in the price of goods and services. The more change in…

Q: On a graph, show the effect of a per unit tax on BUYERS of cigarettes.  (This requires you to think…

A: Price elasticity of demand is the responsiveness of quantity demand with a change in the price of a…

Q: In his fiscal year(FY0 2015 budget proposal, President Obama envisions another hike in the federal…

A: Price (p) of a cigarette pack before 2015 tax hike = $6Tax hike proposed in 2015 budget = 94% or…

Q: Economists in Champaign have been studying the local market for pizza. The market is described in…

A: When the tax is imposed on the good, buyers pay higher price and sellers receive lower price. The…

Q: Give an example for the Average Tax Rates?

A: Average tax rate is the tax paid as a percentage of total income. The average tax rate can be…

Q: The government wants to stop obesity in children, so they decide to tax soda producers for each unit…

A: Introduction Tax is divided between buyer and seller under tax incidence. It is the ultimate burden…

Q: Refer to the Figure 5.7. An excise tax introduces a wedge between the price paid by consumers (Pc)…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: conomists in Champaign have been studying the local market for pizza. The market is described in the…

A: With tax imposed in the free market, the equilibrium quantity will fall and the market price will…

Q: If a tax of $0.90 is imposed, what is the tax revenue?

A:

Q: On a graph, show the effect of a per unit tax on SELLERS of cigarettes.  (This requires you to think…

A: Tax on cigarette creates a wedge between the price received by seller and price paid by buyers.

Q: The incidence of a unit tax depends on the elasticities of supply and demand.  With appropriate…

A: The markets for goods, and services operate on the basis of the demand forces, where the demand…

Q: True or false (explain why): To minimize the burden of taxation, it is better to levy large taxes on…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Next question ne graph shows the market for basketballs, when sellers are taxed $6 a ball. Price…

A: An elastic demand is one in which the adjustment of amount demanded because of an adjustment of cost…

Q: The figure below shows that the imposition of an indirect tax shifts the supply curve to the left.…

A: Tax Revenue is the revenue earned by the government by the impositional of taxes. TR=t*Q TR=Tax…

Q: Imagine the government imposes a $30 excise tax on sellers of cell phones by charging $30 for each…

A: Equilibrium in the goods market is determined at the intersection of demand and supply curves.

Q: Consider the supply and demand functions graphed below. Demand Supply 20 50 80 100 Download the…

A: Tax imposed on either side reduces the quality sold in the market.

Q: Using a hypothetical demand and supply equations explain what would happen if government imposes an…

A: An Indirect tax is an assessment/tax imposed by a governing body, indirectly from the consumer via…

Q: 8. Effect of a tax on buyers and sellers The following graph shows the daily market for shoes when a…

A: Quantity Price buyer pays ($) Price sellers receive ($) Before tax 500 100 100…

Q: Illustrate, with the use of an appropriate figure, what the deadweight loss from the imposition of a…

A: Answer: Deadweight loss is caused due to various kinds of market interventions, it includes…

Q: Tax revenue when tax is $80 Tax revenue when tax is $40 Tax revenue when tax is $120 The graph shows…

A: From the demand schedule, the demand equation is P = 200 – 2Q and the supply equation is P = 40 +…

Q: Question 11 Explain how do the tax incidence and deadweight loss of a commodity tax vary with the…

A: Tax incidence is used to determine the distribution of taxes among the buyers and the sellers.…

Q: What is retrospective tax?

A: Tax is a compulsory payment imposed on the individuals, household and firms. Taxes are generally…

Q: Suppose the Canadian government has decided to place an excise tax of $20 per tire on producers of…

A: The initial equilibrium is at e where S=D and the Price= $90 and quantity= 40 units. Due to the…

Q: Would consumer or producer carry the burden of tax if good is elastic? Show on a graph

A: The tax burden is decided based on the elasticity of demand and supply. If elasticity of demand is…

Q: why it usually makes sense for the government to impose taxes on markets (and products) that have an…

A: Inelastic demand means that price elasticity is less than 1 which means that percentage changes in…

Q: question: Which of the following statements is most true?  A) Producers will pay the entire tax.…

A: Equilibrium is achieved where quantity supplied equals quantity demanded.

Q: What is the incidence of an excise tax when demand is highly inelastic? Highly elastic? What effect…

A: An excise tax is an indirect tax not being paid directly by the customers instead the excise tax is…

Q: Suppose the government institutes a tax of $40.60 per pair, to be paid by the seller. (Hint: To see…

A: When government imposes per unit of tax then burden of tax is shared by buyer and seller both. It…

Q: How does elasticity affect the burden of a tax? Justify your answer using supply and demand…

A: The economic effect of taxation are manifold. This include micro effect on distribution of income…

Q: 24. The graph above depicts the effect of a $5 per unit (excise) tax on the market for sweaters.…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which of the following statements correctly describes the relationship between the size of the…

A: When the government imposes per unit of tax then the burden of tax is shared by the buyer and seller…

Q: The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Whichofthefollowingstatementsis(are)correct? (x)  A payroll tax is a tax on the wages that a firm…

A: A payroll tax is a tax that the firm levies on workers for social security purposes. It is directly…