What would cause a fall in the tax base? OA. The number of residents earning income fell. B. Incomes of city residents fell. C. Either of the above.
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What would cause a fall in the tax base? OA. The number of residents earning income fell. B. Incomes of city residents fell. C. Either of the above.
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- After the excise tax is imposed, what is the new equilibrium quantity of sofas? d. What is the total amount of revenue collected by the government from the excise tax on sofas?Imagine the government imposes a $30 excise tax on sellers of cell phones by charging $30 for each cell phone sold. If we have normal demand and supply curves, the price of cell phones will: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Rise by less than $30. b Rise by more than $30. Rise by exactly $30. d Buyers of cell phones will bear the entire burden of the tax. e Sellers of cell phones will bear the entire burden of the tax.Each state imposes its own excise tax on gasoline. Suppose, for example, that the state of Massachusetts imposes a state gasoline tax of $0.26 per gallon. Suppose further that an average of 1,022,000 gallons of gasoline per day were sold in Massachusetts in 2010. a. Massachusetts' total revenue from the gasoline tax in 2010 was approximately $111 million $86 million $97 million $232 million
- When a good is taxed, the burden of the tax fallsmainly on consumers ifa. the tax is levied on consumers.b. the tax is levied on producers.c. supply is inelastic and demand is elastic.d. supply is elastic and demand is inelasticThe govemment is considering imposing taxes onthe sellers of certain classes of products. The first tax they are considering is a tax on 2% milk. The second is a tax on all dairy products. The third is a tax on all food products. Which of these three taxes would you expect to have the largest impact on the sticker prices of the taxed products? Explain.Macmillan Learning Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of soda to improve the health of its citizens. Manipulate the accompanying graph to demonstrate the impact of the tax on the market for soda. What would be the new equilibrium quantity if instead of taxing consumers, the city taxed producers? 5.0 4.5 4.0 3.5 Market for Bottles of Soda thousand bottles Price ($/bottle) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 0 1 2 5 6 3 4 Quantity (thousands of bottles) D 7 8 9 10
- Why type of good are the best choice for levying or applying an excise tax? A. Goods that are considered “luxury goods” (boats, fragrances, designer-label clothing) B. Goods that are relatively inexpensive C. Good with very few substitutes (I.e., tobacco, alcohol, pharmaceuticals) D. Goods that represent a large share of consumer income in their purchase. E. Good that have many substitutes available.Refer to image. Suppose the government imposes a tax of $0.60 per soft drink purchased. The price paid by the consumer becomes A. $2.40 B. $2.00 C. $2.20 D. $2.60 E. $1.80In which of the following cases would an excise tax be borne mostly by sellers? a. A tax on expensive jewelry. b. A tax on gasoline. c. A tax on food sold in grocery stores. d. A tax on cigarettes. e. A tax on painkiller medications
- Suppose the government eliminates the income tax and replaces it with a consumption tax. With a consumption tax, individuals pay a tax on only the part of the income they spend rather than save. Think about the effect of this change on the market for automobiles. Can you necessarily tell what will happen to the price and quantity of automobiles? A. The equilibrium quantity will be lower and the equilibrium price will be higher. B. A consumption tax would have no effect on the market for automobiles. OC. The equilibrium quantity will be higher and the equilibrium price will be lower. D. The equilibrium quantity will be lower and the equilibrium price will be lower.Suppose that the government decides to charge cola consumers an excise tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6million cases of cola are sold every month; consumers pay $4.00 per case and producers receive $2.00 per case. a. What is the excise tax on cola?b. On whom does the incidence of the tax fall more heavily?c. How much government revenue will be generated by the excise tax?The table shows the market for chocolate bars. A tax of $0.30 per chocolate bar is imposed on sellers. What is the new price that buyers pay sellers for a chocolate bar? Price (dollars per chocolate bar) Quantity demanded Quantity sup (thousands per day) 55 45 35 22225 25 30 35 22334 2.00 2.10 2.20 2.30 40 2.40 15 45 Following the tax, buyers pay sellers $ per chocolate bar.