economics. The idea behind supply side economics is the marginal tax rate is so high it discourages work. Cutting the tax rate would end up increasing tax revenue. We develop a simple model of this idea to determine the restrictions on the utility function required to generate a Laffer curve. Let 7 denote the tax rate, w the real wage rate, and n the labor supply. The tax revenue is T = wnT where wn is labor income, which is the tax base. For convenience, assume w is constant. There is no reason for this assumption to be true, but we impose it to focus on the restrictions on the utility function to generate the Laffer curve. As the tax rate r increases, workers substitute toward leisure and away from consumption. Hence as 7 rises, wn falls and tax revenue falls for high enough tax rates. Let U, V satisfy the standard assumptions. The model is static and households are endowed with one unit of time. A representative household solves max [U(c) +V(1-n)] (en)

Consider the solution to the problem: maximise 24-z-2-(z-y)² subject to the constraint z+y≤ 3. a) Is it true or false to say the constraint will bind? b) What is the value of x? Please enter an integer or fraction rather than a decimal. c) What is the value of the Lagrangian multiplier on the constraint? Give answer in fraction form

In Hofstralia, initially nobody is defaulting on their loan, and the government is running a balanced budget in every period. Joe is a borrower. Draw Joe’s intertemporal budget constraint, use an indifference curve to show his optimal consumption bundle, and place an endowment point (and show its coordinates) on his budget constraint consistent with the fact that he is a borrower. Suppose that the government is eliminates taxes in the current period, and finances its spending through a deficit. Show graphically how the tax cut would affect Joe’s borrowing, and explain what would happen to his consumption and welfare. Would the Ricardian equivalence hold? Why or why not? Suppose now that due to a recession people start losing their jobs. Banks expect some borrowers to default but because of asymmetric information, they do not know which ones. Explain how interest rate on loans would change and why. Show on the graph and explain how events in the financial market would affect Joe’s…

Not sure if what I have is correct and confused on how to solve the rest

Can you explain why my answer wasn’t correct?

Algebraically, solve for the after tax equilibrium price and quantity in the corn market, if the government collects a specific tax of t=$2.40 from customers. The before-tax linear demand function for U.S. corn is given as Q=15.6-0.5p and the original supply curve is given as Q=9.6+0.25p. Please show with a diagram.

Based on this equation, find the marshallian demand curve

In 1998, Americans smoked 25 billion packs of cigarettes, and the retail price was about $3.00 per pack. Price elasticity of demand is estimated to be -0.5 and price elasticity of supply is estimated to be +0.8. a. Reconstruct linear demand and supply equations from the data above. b. Calculate the impact of a 50 cent tax on cigarettes. (New eq. P, Q, ∆CS, ∆PS, DWL)

please answer all thanks !

After the imposition of a tax, equilibtium is as the intersection of demand and supply+tax. By how mach does consumer expenditure change after the imposition of the tax? Price 10 8 5 0 6 7 10 S = tax D S Quantity