You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 250 - 5P and the market supply (including taxes) is QS = 4P - 110 (both in millions), where P is the monthly price of the telecommunication services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 4.171P -110. How much money per unit would a typical consumer save each month as a result of the proposed legislation? Instruction: Enter your response rounded to the nearest penny (two decimal places). $ 2.65

Suppose that a lumber-producing firm had a demand for the ability to burn sawdust given by: Q = 90- P. Where Q is amount of sawdust burned when the firm has to pay price (P) per unit of sawdust burned. Calculate the quantity of sawdust burned if there is a per unit tax of $26 per unit of sawdust burned. (Do not include a $ sign in your response. Round to the nearest 2 decimal places if necessary.) Answer: Check

It's a specialized market, so we'll just have to assume we have enough buyers and sellers to have our demand and supply curves be straight, smooth lines.  The following information applies to the market before any tax is applied: Vertical intercept, demand curve: 600Vertical intercept, supply curve: 100P* = $300Q* = 50 Later, a tax is put on the market.  The per-unit tax is $100, and it makes the price received by sellers fall to $260. With the tax, only 40 units are sold.  (These numbers are not very realistic - but just go with it.) Carefully following all numeric instructions, calculate the price paid by buyers. Calculate market total surplus AFTER the tax is applied. Calculate producer surplus BEFORE the tax is applied.  Calculate total market surplus BEFORE the tax is applied.   Calculate DWL after the tax is applied.

Compare placing a tax on gasoline to a mandated increase in the average fuel efficiency of each car in terms of reducing the usage of gasoline, reducing greenhouse gases, and also providing consumers with choice in their vehicle selection.   Analyze the impact on consumers, service stations, and car manufacturers.

Amy is a graduate student living in Dallas who works as a caddy to supplement their normal income. At an hourly wage rate of $15, they are willing to caddy 5 hours per week. Upping the wage to $25 per hour, they are willing to caddy 14 hours per week. Using the midpoint method, the elasticity of Amy’s labor supply between the wages of $15 and $25 per hour is approximately  (0.06, 0.53, 1.89, 10.56) , which means that Amy’s supply of labor over this wage range is  (elastic/inelastic)  .

Assuming a supply function of Qs = 100+100p and a demand function of Qd = 700-50p  and an equilibrium price of $4 with an equilibrium quantity of 500million gallons  please answer the last question regarding the deadweight loss.

Assume the state of Alaska placed a tax on playing cards of 7 cents per pack. If the state generated $42630 in revenue, how many packs of cards were sold?

Doyle and Samphantharak (2008) find that when a 5% gas tax is implemented, prices consumers pay for gas increase by about 4%. What role does demand elasticity play in determining the size of this price change? That is, under what demand elasticity cases would the price change be closer to 5%, or closer to 0%? Illustrate and explain using supply-and-demand graph(s)..

18. Suppose that corporate income tax in Japan is 30% for large enterprises. And one of them is Nissan Japan. Assume that Nissan Japan places its electric vehicles (EV) factory in California, USA by setting up Nissan America. California charges enterprises with a 10% corporate (flat) income tax rate. Suppose the demand of Nissan EV in Japan is p=220-2Q (p: price in one hundred thousand yen, Q is number of EV per week). Costs of transporting EV cars from California to Japanese customers and taxes and fees related to export-import activities are assumed to be zero. Its production cost in California is constant at 20 per unit. If Nissan American sells EVS produced in California to Nissan Japan at its production cost, what are the combined net profits of all Nissans and total corporate income tax the Nissan Japan has to pay (per week)? (Note: Nissan Japan will use the transfer price as its marginal cost.) ONet profit=5000; Sum of corporate tax=1500 Net profit=3500; Sum of corporate…

Why must local governments pay attention to the types of products they tax. Describe in detail how the elasticity of these products impacts the expected revenue to be generated by these local Governments