Question

The government intends to give a $5 per subsidy tax on milk sales (given to producers)...

The government intends to give a $5 per subsidy tax on milk sales (given to producers)

-Determine how consumers and producers share this $5 subsidy.

-Determine subsidy cost to government.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. A subsidy is the opposite of a tax with a tax of $ 0.50 to...
5. A subsidy is the opposite of a tax with a tax of $ 0.50 to the buyers of cups of coffee, the government collects $ 0.50 for each cup of coffee purchased; with a subsidy $ 0.50 to coffee sellers, the government pays sellers $ 0.50 to sellers for every cup of coffee sold. Show the effect of a subsidy of $ 0.50 per cup on the cup offer curve of coffee, the effective price paid by consumers, the...
There is a sales tax that producers remit to the government, and the economic incidence of...
There is a sales tax that producers remit to the government, and the economic incidence of the tax fall completely on the producer. If instead the consumers remit the tax, where will the legal incidence of the tax fall? Why?
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax....
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $5 per bottle. After the tax, 34 billion bottles of wine are sold every year; consumers pay $6 per bottle, and producers receive $2 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the...
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax....
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 15,000 bottles of wine were sold every week at a price of $7 per bottle. After the tax, 10,000 bottles of wine are sold every week; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $ ? per bottle. Of this amount, the burden...
Government made proposal to increase the tax on gasoline by 50¢ per gallon. The government would...
Government made proposal to increase the tax on gasoline by 50¢ per gallon. The government would give poor consumers an amount of cash large enough that they could buy their original bundle (of gasoline and other goods). 1. Show how a typical poor person's budget line changes as a result of the tax and the subsidy. 2. Use a graph to show how the tax and subsidy could affect this person's optimal bundle. 3. Is this individual better or worse...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every week at a price of $7 per bottle. After the tax, 25,000 bottles of wine are sold every week; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $_____ per bottle. Of this amount, the burden that falls on consumers is...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10 million bottles of wine were sold every month at a price of $4 per bottle. After the tax, 3 million bottles of wine are sold every month; consumers pay $7 per bottle, and producers receive $2 per bottle (after paying the tax). The amount of the tax on a bottle of wine is -----per bottle. Of this amount, the burden that falls on consumers...
The government impose a 20%tax on the sale of milk. Given that Sam has an income...
The government impose a 20%tax on the sale of milk. Given that Sam has an income of 100 pennies, the price of milk is 5 pennies, the price of bread is 4 pennies, and Sam's utility function is U=(M)2/3(B)1/3. how much revenue will this tax raise?
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 50...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 50 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 43 million bottles of wine are sold every month; consumers pay $9 per bottle, and producers receive $4 per bottle (after paying the tax). The amount of the tax on a bottle of wine is ______ per bottle. Of this amount, the burden that falls on...
Protectionism refers to government policies that: A. give foreign producers tax credits in an effort to...
Protectionism refers to government policies that: A. give foreign producers tax credits in an effort to increase their exports. B. stimulate trade between countries and increase domestic producers profit. C. restrict imports of foreign products. D. restrict the output of domestic producers to keep their prices high. Which could be sources of funding for a government that wants to increase government expenditures? A. both taxes and borrowing B. neither taxes nor borrowing C. taxes only D. borrowing only When fiscal...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT