Question

If a tax on soda for buyers is eliminates and replaced with a $0.50 tax on...

If a tax on soda for buyers is eliminates and replaced with a $0.50 tax on soda sellers. How would this change the impact of the tax?

This would not affect the impact of the tax

This would shift the burden of the tax from buyers to sellers

This would cause prices to fall

This would cause an increase in deadweight loss

This would cause sales to drop

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Who ultimately pays the commodity tax depends on: A. who writes the check to the...
1. Who ultimately pays the commodity tax depends on: A. who writes the check to the government B. the relative elasticities of demand and supply 2. When the government imposes a commodity tax, A. buyers will pay a higher price inclusive of the tax and sellers will receive a lower price exclusive of the tax B. buyers will pay a lower price inclusive of the tax and sellers will receive a higher price exclusive of the tax 3. Here are...
Why is a tax inefficient? A tax is inefficient because _______. A.the marginal social benefit from...
Why is a tax inefficient? A tax is inefficient because _______. A.the marginal social benefit from the last unit sold exceeds the marginal social cost of the last unit produced and a deadweight loss is created B.it decreases consumer surplus but increases producer surplus C.the burden of the tax is not always split equally between buyers and sellers D.with a tax, the market produces more than the equilibrium quantity
Question 01: Answer both A and B. (A):    Explain Incidence of Taxation and its impact on...
Question 01: Answer both A and B. (A):    Explain Incidence of Taxation and its impact on market efficiency. How the tax burden is shared between buyers and sellers? . (B): Keeping in view the demand –supply analysis, how the following events will affect the prices and quantities/output in the market? (Answers must be supported by a neat and clean diagram):                                                           If government imposes 5% custom duty on the import of spare parts in the automobile sector; If government...
Suppose the market for soda is represented by the following supply and demand equations: QS =...
Suppose the market for soda is represented by the following supply and demand equations: QS = 35P – 39.75 and QD = 10.25 – 5P, where P is price per bottle and Q measures bottles per second. a. What are the value of consumer and producer surplus? b. If the government imposes a $0.50 tax per bottle, what are the value of consumer and producer surplus? c. What is the deadweight loss from the tax? How much revenue does the...
Suppose that before tax was imposed 400 million gallons of gasoline was supplied at $3.00 per...
Suppose that before tax was imposed 400 million gallons of gasoline was supplied at $3.00 per gallon. What happens when government imposes a tax of 60 cents per gallon on sellers? How would such a tax affect the market for gasoline i.e. what is the new equilibrium? The ne On whom does the incidence of the tax fall more heavily? How much government revenue will be generated by the excise tax? What happens when government imposes a tax of 60...
Suppose the City of Provo is considering adding a special sales tax on either yogurt or...
Suppose the City of Provo is considering adding a special sales tax on either yogurt or ice cream. Supply is essentially equivalent in both markets, but Demand for ice cream is less elastic. Assume that, prior to the tax, market price and quantity are equivalent in the two markets. If the same per-unit tax is imposed on both markets, more revenue would be raised by the tax on ______ and more deadweight loss would occur in the market for ______....
Excise tax rates on tobacco and tobacco products increase in March and September based on average...
Excise tax rates on tobacco and tobacco products increase in March and September based on average weekly ordinary time earnings. Perform a web-search to determine the amount of excise tax charged (as at 1 January 2018) on a standard 20 packet of cigarettes. If the standard packet is sold for a price of $30, how much is the before tax price? Illustrate using the demand and supply model, the effects of a tax imposed on sellers of tobacco products. Explain...
Page 1 1. According to the Law of Demand: A more of a product will be...
Page 1 1. According to the Law of Demand: A more of a product will be demanded when buyers’ incomes increase. B a decrease in a product’s price will cause the product’s demand curve to shift to the right. C there is a direct relationship between a change in a product’s price and a change in the quantity demanded. D there is an inverse relationship between a change in a product’s price and a change in the quantity demanded. 2....
Some economists have argued that a land tax is the best kind of tax. Consider a...
Some economists have argued that a land tax is the best kind of tax. Consider a county with exactly 18 plots of land that can be farmed, meaning that the supply of land is fixed at 18. Demand for farmland is given by D(p)=80−1p, where p is in thousands of dollars. 1st attempt Part 1   (3 points) See Hint What is the equilibrium price for farmland?   $ ______ Suppose that the local government puts in place a $2,000 land tax per plot....
Economic Analysis of Taxation g. What is a lump sum tax? What are the desirable and...
Economic Analysis of Taxation g. What is a lump sum tax? What are the desirable and undesirable aspects of using a lump-sum tax to finance government expenditures? h. What influence the magnitude of the total excess burden of a tax? If we were to have zero excess burden, how elastic should the supply or demand of a good should be? i. What is the efficiency loss ratio of a tax? How is it used in designing a tax? j. What...