Evaluate the social economic welfare changes arising from a government tax on production of cigarettes in Hong Kong. Hypothetical 2021 data are provided as follows: The average price of cigarette is HK$60 per packet and the total quantity of cigarettes consumed per month on average is 20,852,000 packets. The per-unit tax imposed on the domestic cigarette production is HK$18 per pack (equivalent to 30% of the price for a packet of cigarette). The local demand for cigarette is price inelastic (which is assumed to be 0.1, 0.5 or 0.9). The supply is price elastic (which is assumed to be 1.5, 2.0 and 2.5). a. Calculate and tabulate all your empirical results using The Microsoft Excel Spreadsheet. The application of Excel for the computations will be taught and demonstrated in the tutorial class. Write up your final term paper by following the recommended format (which will be discussed in one of your tutorial classes).

Evaluate the social economic welfare changes arising from a government tax on production of cigarettes in Hong Kong. Hypothetical 2021 data are provided as follows: The average price of cigarette is HK$60 per packet and the total quantity of cigarettes consumed per month on average is 20,852,000 packets. The per-unit tax imposed on the domestic cigarette production is HK$18 per pack (equivalent to 30% of the price for a packet of cigarette). The local demand for cigarette is price inelastic (which is assumed to be 0.1, 0.5 or 0.9). The supply is price elastic (which is assumed to be 1.5, 2.0 and 2.5). a. Calculate and tabulate all your empirical results using The Microsoft Excel Spreadsheet. The application of Excel for the computations will be taught and demonstrated in the tutorial class. Write up your final term paper by following the recommended format (which will be discussed in one of your tutorial classes).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...

See similar textbooks

Similar questions

INCREASE IN TAX ON ALCOH OL AND TOBACCO Specific excise duty on alcohelle bever ges and tobacco products will increase by 8% INCREASES WIT MOUT BEER 14c per 340ml can UNFORTIFIED WNE 56e per 7 50mi bottle FORTIFIED WINE 44c per 750ml bottle SPARKLING WINE 86c per 750ml bottle APPLE BEER AND ALCOHOLIC FRUIT DRINKS 14c per 840ml can STRONG BEVERAGE/ORINKS RS,50 per 750ml bottle 1 Excise duty is also known as 2 In your opinion, do you think it was the right decision to increase excise taxes? Motivate your answer.
suppose the canadian governemt. has decided to place an excise tax of $40 per tired on producers of automoblie tires.
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 tax
2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Find the equilibrium price and quantity ii. If a tax of GH¢ 10.00 per unit is imposed calculate the equilibrium price and quantity iii. The distribution of tax Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate th profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢ 15 in the market
Question 2h Gvem the folowing ndormation Q0-240-5P where QD is the quantity demanded, 05 is the quantity upplied and Pis the poo Suppose that the government decides to impose a tax of $12 per unit on sellers in tthe market Determne Deadwnght loss of the tax
Suppose the market demand and supply curves are as given below. In each case, quantity refers to milions of litres of gasoline per month; price is the price per litre (in cents). Pa400 - 240 Supply: P= 160 + 80 Given these demand and supply equations, the equilbrkum price is 220 cents and the equilibrium quantity is 7.5 milion litres. Suppose the government imposes a tax per itre, and as a result the quantity sold is 5.8 million litres. What is the new "consumer price" and what is the new "producer price"? The new price consumers pay is 260.8 cents. (Enter your response rounded to the nearest cent.) The new price producers receive is cents. (Enter your response rounded to the nearest cent.)
Suppose the the demand for a product is given by Qd = 40 − 3P , andsupply by Qs = 5 + 2P Suppose that government places a tax on consumers of 10 per unit onproducers.(a) What will be the price and quantity with the tax?(b) How much will be the consumer be paying, including the tax, for each unit that the consumer purchases?(c) How much will the government be collecting in tax revenues?(d) What is the consumer surplus now that a tax has been placed on theproduct?(e) What is the producer surplus?(f) What is the deadweight loss?
Both a payroll tax and an excise tax on alcoholraise revenue and, respectively, shrink the marketsfor labor and alcohol. Although both have somefunctions in common, governments may havedifferent goals when levying them. What goalsdo you think motivate a payroll tax? What goalsmotivate an alcohol 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.
The 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?
If the government quadruples the amount of tax on gasoline, can you be sure that revenue fromg asoline tax will rise? Can you be sure that the deadweight loss from the gasoline tax will rise? Explain. (Hint: Incorporate graphs)
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?