Does a tax increase or decrease the quantity of the taxed good that is consumed?

Q: When a tax is placed on the sellers of cell phones, the size of the cell phone market a. and the…

A: Given:- Tax placed on cell phone seller To determine:- Size of cell phone market=?

Q: Define progressive tax.

A: A tax refers to an amount imposed on the person, commodities or any other item to earn revenue for…

Q: The graph shows the market for chocolate bars. Draw a point at the equilibrium quantity and…

A: Given, Equilibrium without tax, Demand = Supply Price = $3 Quantity = 6

Q: is it always possible to increase tax revenues by increasing tax rates?

A: Laffer curve represents the relationship between tax rates and tax revenue. It is an inverted U…

Q: Explain the impact of per-unit sales to the buyer and the seller, using a DIAGRAM that illustrates…

A: When sales tax is imposed on the producer, the production cost of the producer rises because for…

Q: Why is gasoline heavily taxed? Explain

A: A government plays a crucial role to overcome the problem of scarcity in the economy. It regulates…

Q: Governments tend to like to tax goods with inelastic demands. Why

A: Answer to the question is as follows:

Q: tax

A: The tax is the amount which government charges on their income or on through different items. The…

Q: How can the government improve tax collections without imposing much tax to the consumer?

A: When a taxing body, typically a government, levies or imposes a financial responsibility on its…

Q: What is the effect of government purchased and taxation on the level of income?

A: KEYS- There are two ways the government can influence fiscal policy: by raising taxes or by cutting…

Q: Find the net indirect taxes if the indirect taxes are $60 and the subsidies are $15?

A: indirect taxes = $60  subsidies = $15 net indirect taxes = ?

Q: Can you explain how to figure this out? The demand curve moved to the left Showing what the demand…

A: Initially when there were no taxes involved, the equilibrium price which the buyer paid and the…

Q: In which of the following cases would an excise tax be borne mostly by sellers?   a. A tax on…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.

Q: If the government removes a tax on a good, then the quantity of the good sold will______.

A: The answer to the question is as follows :

Q: What are pros and cons to increasing the gasoline tax?

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: If the government decide to increase taxes on sugar, who do you think will carry the burden of…

A: The equilibrium price and quantity of a good or service is determined by the forces of market demand…

Q: Give an example for the Average Tax Rates?

A: Average tax rate is the tax paid as a percentage of total income. The average tax rate can be…

Q: What are the consequences of an increase in direct taxation?

A: Tax is the charge which is levied by the government. It is a source of government revenue which the…

Q: An income tax put on a person's income raises the same amount of revenue as a quantity tax put on…

A: People are exposed to a consumption tax when they spend money, similar to how much they buy.  When…

Q: Calculate the value of indirect taxes for the following two cases:- (1) Indirect tax = 0 ,…

A: We must first understand what is the concept of net indirect tax.  Net indirect taxes are given by…

Q: When a tax is levied on a good,   a. government revenues exceed the loss in total welfare.   b.…

A: Taxes are the mandatory payments that are made by the individuals, firms, companies etc to the…

Q: How do taxation and government spending impact the economy of a country positively in three ways and…

A: Positive impact of taxation Cutting taxes enhance demand by increasing disposable income and…

Q: There is an _________ relationship between tax rate and supply of a good

A: The tax imposed by the government and the subsidy lend by the government all impacts the cost of…

Q: Would a tax on prescriptions drugs be more likely to be progressive or regressive? Why?

A: The Progressive tax is the theory in tax economics which advocates the proportional tax along with…

Q: A tax A) places a wedge between the price paid by the buyers and the price received by the sellers.…

A: Whether the tax is imposed on buyers or sellers, the effect of the tax is same. It leads to…

Q: If after a tax is imposed, the price paid by the buyer rises by $3 while the price received by the…

A: Given, After tax, price paid by buyer = rose by $3 After tax, price received by seller = falls by $2…

Q: what will happen to the equilibrium of mobile phones of government announces higher sales taxes on…

A: Imposition of sales tax results in leftward shift of the supply curve.

Q: How does a tax on a good affect the price paid bybuyers, the price received by sellers, and the…

A: A tax is a monetary charge that is applied to a good or service. The tax will have the effect of…

Q: What is the best policy to implement with regard to taxes?

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Discuss how a government might use taxation to affect the distribution of income

A: In an economy, the inequality of income distribution can be explained by the situation when a richer…

Q: Discuss the effects of direct taxes on consumer behavior.

A: Direct taxes are those taxes which are payable on the income of an individual or entity. Income tax,…

Q: What determines whether the buyer or seller pays the bulk of the tax?

A: The incidence of tax depends on the relative price elasticity of demand and supply.

Q: How can tax incidences have a positive and negative impact on the economy?

A: Tax incidence refers to the burden of a particular tax that is imposed by the government.

Q: A tax on umbrellas will most likely Select one: a. fall mostly on the umbrella buyers rather…

A: Taxes are the mandatory payment obligations which are required to be fulfilled by firms or consumers…

Q: If a tax is levied on the buyers of a product, the tax burden will fall entirely on the buyers. A.)…

A: Tax is revenue for the government.

Q: What happens to the tax revenue when the tax on a good increase gradually? (a) Will rise (b) Will…

A: ‘Deadweight Loss(DWL)’ can be defined as a cost that is created to society due to any kind of market…

Q: Market for

A: Tax of 6/unit will raise the supply curve by 6.

Q: Why will direct taxes increase faster than per capita income?

A: In an economy, the government imposes taxes on the income of the people in different ways such as…

Q: nich among the following is a direct tax? [A] Excise Duty [B] Sales Tax [C] VAT [D] Income Tax

A: According to the given question the direct tax is Option(d) is correct that is the income tax Reason…

Q: Whichofthefollowingstatementsis(are)correct? (x)  A payroll tax is a tax on the wages that a firm…

A: A payroll tax is a tax that the firm levies on workers for social security purposes. It is directly…

Q: New York has the highest cigarette taxes in the country. The price of an average pack of cigarettes…

A:

Q: In the diagram to the right, illustrating a per-unit tax equal to P, minus Pa, tax revenue is…

A: Tax revenue = D and F Excess burden = E and G

Q: For what kind of preferences will the consumer be just as well-off facing a quantity tax as an…

A: Consumer well-off facing a quantity tax in the case of the kinked demand curve for the complement…