Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is the (a) burden, tax revenue? Then replace the % tax with $40 per unit tax. What is the tax burden and tax revenue? P 180 160 740 100 PO GO 40 20 % tax: Unit tax: 100 180 140 burden on consumer burden on consumer 230 240 260 240 burden on producer burden on producer tax revenue tax revenue S Qtr P
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- There are a variety of taxes that a person pays when buying an airline ticket. One tax is called the LUST fuel tax. LUST stands for leaking underground storage tank. The LUST tax is to establish a trust fund to provide money for oversight and corrective action against owners of leaking underground storage tanks and provides money for cleanup of LUST sites where the owner or operator is unknown. Is it efficient for customer’s of airlines to beforced to pay the tax?Price Amount Requested (Unit) Amount Offered (Unit) (IDR) 2400 120 180 2000 160 150 Based on the demand function and supply function that you got in question number 1 above, determine the new market equilibrium point if the government imposes a perunit sales tax (fixed tax) on the goods "X" of Rp. 100 / unit. How much is the tax burden borne by consumers and the tax burden borne by producers, and how much is the government tax revenueNow 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
- The figure below shows a single firm's marginal abatement cost when facing a per-unit emissions tax of t. Use the figure to answer the following questions: a. What area(s) represent the total abatement cost (TAC) of the firm under the tax b. What area(s) represent the total amount in taxes paid by the firm $ t a b ان 6 e1 e2 emissionsIf the pre-tax cost function for John's Shoe Repair is C(q) = 150+10g-2q² +0.333q³ and it faces a specific tax of $20, what is the profit-maximizing condition if the market price is p? Can you solve for a single, profit-maximizing q in terms of p? The proft-maximizing quantity in terms of p is q=(Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with the / character.)A religious group engaged in the sale of bibles and other religious articles was required to pay taxes on thesales of such merchandise. Is the imposition of the tax valid?
- Soft drink producer's operation in each week produces q liters of mineral water at a cost of ag) = 2000 + 5g+ 0.001q dollars, selling its output at $15 a liter. The government decides to levy a tax of r dollars a liter on the producer's output, knowing that the producer will adjust the output to maximize its profit with respect to changed situations. a. What is the government's maximum tax revenue T= rq , and at what tax rate is achieved (? 5. b) Investigate the relationship between producer's maximum profit change and tax ? c. C) discuss the situation .If deadweight loss is $24,000 under a tax of $4 per unit, what is deadweight loss under a tax of $2 per unit? Choices are 1) $6000, 2)$8,000 3) $12,000. 4) $4,000Give 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 you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservation screen, you are informed that you will be charged an additional $30 a night in various taxes that you have to pay to the hotel. a. Indicate whether each of the given factors is likely to raise the economic burden of the tax for you or for the hotel. Raises economic burden for the hotel Answer Bank The hotel has unique architecture and is considered a historical landmark. There are many other hotels in the area. Raises economic burden for you It is the peak of tourist season. A hurricane recently ravaged the area, resulting in many vacancies at competing hotels. b. Ultimately, who pays the majority of the economic burden of the tax is dependent uponThe government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic. Calculate the consumer and producer share of tax burden and explain it on the graph?The vertical distance between points A and B represents the original tax. 12+ 11+ 10 9 8 7. 6 Price 2 1 D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit tax from $5.00 to $7.50, then the price paid by buyers would be $10.50, the price received by sellers would be $3, and the quantity sold in the market would be 0.5 units. Deadweight loss would now be a. $1.50 O b. $0.50 c. $4.0 Od. $0.625