Question

What is the welfare effect of a tax on consumers, producers, the government and society in...

What is the welfare effect of a tax on consumers, producers, the government and society in general? Assume that a tax is imposed on either consumers or producers. Illustrate your answer with a graph, and define each of the welfare measures you are using.

(no copy paste please. Please aswer completely).

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
Q6) Please describe and explain the welfare effects of tariffs on consumers, producers, and the government.
Q6) Please describe and explain the welfare effects of tariffs on consumers, producers, and the government.
Draw and label a graph depicting a government tax on consumers of a good. Start with...
Draw and label a graph depicting a government tax on consumers of a good. Start with a graph depicting general market equilibrium with the demand curve having a slope of 1 (technically negative 1) and the supply curve having a slope of 2. Modify the graph to demonstrate the effect of a tax on the consumer on the market.
4. The government places a tax on the suppliers of socks. (a) Illustrate the effect of...
4. The government places a tax on the suppliers of socks. (a) Illustrate the effect of this tax on equilibrium price and quantity in the sock market (drawing two graphs will be the easiest way to do this) Identify the following areas both before and after the imposition for the tax: consumer surplus, producer surplus, tax revenue and dead-weight loss. (b) Properly label the new quantity in the market after the tax, the price that consumers pay and the price...
Consider the market for white athletic socks, which consumers consider to be identical products. If the...
Consider the market for white athletic socks, which consumers consider to be identical products. If the demand is very elastic and the supply is very inelastic, how would the burden of a new tax on athletic socks be shared between consumers and producers? What if the situation were reversed – a very inelastic demand and a very elastic supply? How would that change the way consumers and producers share the burden of the new tax? Justify your answer. Please do...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount than we export. For this question, assume that the U.S. either imports completely or exports completely and that the trade balance reflects something fundamental about our resources and production costs relative to the rest of the world. Use a detailed diagram to show supply and demand in the market for computers in U.S. Label all areas in the graph in order to answer the...
Suppose the average monthly demand for cigarettes can be described by the equation QD = 30−p,...
Suppose the average monthly demand for cigarettes can be described by the equation QD = 30−p, and supply can be described by the equation QS = 18+2p, where p is the price of a pack of cigarettes. When there is no tax on cigarettes, the equilibrium price is p0 =$4 per pack and Q0 =26. (a) Suppose the government sets a specific tax on tobacco producers of τ = $1.50 per pack to reduce tobacco consumption. How much do consumers...
- The impact of tax on markets and welfare distribution. - Use supply and demand diagrams...
- The impact of tax on markets and welfare distribution. - Use supply and demand diagrams to answer the following questions. Draw new diagrams for answers to each part. a- Show that regardless of who the tax is levied on (consumers or producers), a tax increase the price paid by consumers, decrease the price received by producers, and make the market smaller compared with a free market. Notes: You should use two diagrams, one for tax on consumers and one...
1) for a high tax society the disposable income of people will decline and so will...
1) for a high tax society the disposable income of people will decline and so will be there saving and investment, in this kind of a society the government expenditure will crowed out the private investment as the rate of interest will be high. in this society the poor people will be benefited the most from the public expenditure but the richer class will be burdened. in case of a low tax society the disposable income f people will be...
Consider the effect of a proportional tax on hours worked using diagrams to illustrate your answers....
Consider the effect of a proportional tax on hours worked using diagrams to illustrate your answers. Assume consumers are endowed with a certain number of hours of leisure time each week that they can sell to the market in the form of work. Beginning with no tax, draw a diagram to show the effect of the introduction of the proportional tax , also, Given that leisure is a normal good, provide a theoretical prediction about the effect of the tax...
Effect of Luxury Tax on Consumption Government economists of a developing country determined that the purchase...
Effect of Luxury Tax on Consumption Government economists of a developing country determined that the purchase of imported perfume is related to a proposed "luxury tax" by the following formula where N(x) measures the percentage of normal consumption of perfume when a "luxury tax" of x% is imposed on it. N(x) = 10,000 − 40x − 0.02x2       (0 ≤ x ≤ 200) Find the rate of change of N(x) for taxes of 45%, 100%, and 130%. (Round your answers to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT