What is the incidence of the tax that falls on producers? ?
Q. Suppose that the government decides to charge cola consumers a tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6 million cases of cola are sold every month; consumers pay $4 per case and producers receive $2 per case. Use this information to answer the following questions. What is the incidence of the tax that falls on producers? $ ___ per case of cola Thanks
Asked by 1carus - Sun Jan 25 16:18:24 2009 - - 1 Answers - 0 Comments
A. $ 1.5 per case of cola $3.5 - $2.0 = $1.5
Answered by Yuri - Sun Jan 25 17:04:28 2009
Q. Suppose that the government decides to charge cola consumers a tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6 million cases of cola are sold every month; consumers pay $4 per case and producers receive $2 per case. Use this information to answer the following questions. What is the incidence of the tax that falls on producers? $ ___ per case of cola Thanks
Asked by 1carus - Sun Jan 25 16:18:24 2009 - - 1 Answers - 0 Comments
A. $ 1.5 per case of cola $3.5 - $2.0 = $1.5
Answered by Yuri - Sun Jan 25 17:04:28 2009
As the Government continues to push tax rates ever higher, will the incidence of tax cheating increase?
Q. I think there's a ton of cheating going on already. I'd like to see the elimination of the income tax, to be replaced by a national sales tax. I know that it's regressive, but it does have the virtue of bringing people who currently cheat into the tax paying base. Max - Read the paper, buddy. They're on the way - and they're going to be massive.
Asked by Mr. Bugsme - Wed Jun 17 09:24:12 2009 - - 7 Answers - 0 Comments
A. Except for tobacco taxes that are hard to cheat on, there have been no increases. A national sales tax would just transfer cheating opportunities to a different group of cheaters.
Answered by Max Hoopla - Wed Jun 17 09:29:15 2009
Q. I think there's a ton of cheating going on already. I'd like to see the elimination of the income tax, to be replaced by a national sales tax. I know that it's regressive, but it does have the virtue of bringing people who currently cheat into the tax paying base. Max - Read the paper, buddy. They're on the way - and they're going to be massive.
Asked by Mr. Bugsme - Wed Jun 17 09:24:12 2009 - - 7 Answers - 0 Comments
A. Except for tobacco taxes that are hard to cheat on, there have been no increases. A national sales tax would just transfer cheating opportunities to a different group of cheaters.
Answered by Max Hoopla - Wed Jun 17 09:29:15 2009
How does the legal tax liability affect the incidence of taxation?
Q. didnt make sense to me either, thats why i posted it up. just so that we're clear, legal tax liability- how much you owe(tax brackets are not to be taken in considersation, just the general idea) tax incidence - distribution of tax between certain parties, (buyers and sellers, employees and employers)
Asked by kazmaniak - Thu May 15 17:07:45 2008 - - 1 Answers - 0 Comments
A. ...cannot compute... I'm sorry (really, not trying to glib), that series of words just doesn't work in my head to make a sensible question. Is it just me?
Answered by Quizzard - Thu May 15 17:57:46 2008
Q. didnt make sense to me either, thats why i posted it up. just so that we're clear, legal tax liability- how much you owe(tax brackets are not to be taken in considersation, just the general idea) tax incidence - distribution of tax between certain parties, (buyers and sellers, employees and employers)
Asked by kazmaniak - Thu May 15 17:07:45 2008 - - 1 Answers - 0 Comments
A. ...cannot compute... I'm sorry (really, not trying to glib), that series of words just doesn't work in my head to make a sensible question. Is it just me?
Answered by Quizzard - Thu May 15 17:57:46 2008
How is the incidence of the tax affected by the price elasticity of demand?
Q. Economics/Microeconomics
Asked by Reza - Thu Jun 25 09:11:18 2009 - - 2 Answers - 0 Comments
A. we all know that no matter what type of the taxation is-be it consumer tax or sales tax or anything else-the real tax is shared by the producer and the consumer. We call it tax burden in finance. which side take on more responsiblities is determined by the ratio of the elasticity of demand(Ed) and the ealsticity of supply(Es). when Ed>Es, consumers are suggested to bear a larger part of the total tax, and it is natural to get a converse conclusion when Ed
Q. Economics/Microeconomics
Asked by Reza - Thu Jun 25 09:11:18 2009 - - 2 Answers - 0 Comments
A. we all know that no matter what type of the taxation is-be it consumer tax or sales tax or anything else-the real tax is shared by the producer and the consumer. We call it tax burden in finance. which side take on more responsiblities is determined by the ratio of the elasticity of demand(Ed) and the ealsticity of supply(Es). when Ed>Es, consumers are suggested to bear a larger part of the total tax, and it is natural to get a converse conclusion when Ed
Micro-Econ, Tax Incidence?
Q. im having troubles w/ learning the concepts of tax incidence and what not. I understand that when demand is inelastic and supply is elastic, the tax burden goes directly to buyers. and when demand is elastic and supply is inelastic, the burden goes directly to sellers. theres this problem that ive been stressing over about for the past few hours lol id appreciate some help: "suppose that the government needs to raise tax revenue. a politician suggests that the government place a tax on food because everyone must eat and, thus, a food tax would surely raise a great deal of tax revenue. however, since the poor spend a large portion of their income on food, the tax should be collected only from the sellers of food (grocery stores) and not… [cont.]
Asked by asdjfksakd;jfasdf - Fri Sep 28 05:46:21 2007 - - 2 Answers - 0 Comments
A. The government can only legislate that the sellers PAY the tax, but they cannot stop them from passing on the cost of this tax to the buyers. What would happen is that the grocers themselves would pay the tax but they wouldn't actually be bearing the burden of it due to their passing it on to their customers. The poor would have to pay higher prices for food and would indirectly bear the burden of the tax. It's a hidden tax, but it's just as real.
Answered by Jeremy - Fri Sep 28 05:50:26 2007
Q. im having troubles w/ learning the concepts of tax incidence and what not. I understand that when demand is inelastic and supply is elastic, the tax burden goes directly to buyers. and when demand is elastic and supply is inelastic, the burden goes directly to sellers. theres this problem that ive been stressing over about for the past few hours lol id appreciate some help: "suppose that the government needs to raise tax revenue. a politician suggests that the government place a tax on food because everyone must eat and, thus, a food tax would surely raise a great deal of tax revenue. however, since the poor spend a large portion of their income on food, the tax should be collected only from the sellers of food (grocery stores) and not… [cont.]
Asked by asdjfksakd;jfasdf - Fri Sep 28 05:46:21 2007 - - 2 Answers - 0 Comments
A. The government can only legislate that the sellers PAY the tax, but they cannot stop them from passing on the cost of this tax to the buyers. What would happen is that the grocers themselves would pay the tax but they wouldn't actually be bearing the burden of it due to their passing it on to their customers. The poor would have to pay higher prices for food and would indirectly bear the burden of the tax. It's a hidden tax, but it's just as real.
Answered by Jeremy - Fri Sep 28 05:50:26 2007
Macroeconomics - Tax incidence question!?
Q. What is it meant by tax incidence? Do the people who are legally required to pay a tax always bear the burden of the tax? Please explain briefly! Thanks!
Asked by tracy1613 - Thu Feb 7 19:58:42 2008 - - 2 Answers - 0 Comments
A. Meaning of tax incidence is the ultimate sharing of the burden of tax. While in the case of income tax or any other direct tax, the entire tax is borne actually by the targetted tax payer (tax on my income/ estate is what I pay as tax on my income / estateand I can shift this burden to another, except when because of the increase in income tax also results in an increase in my salary from my employer who wants to keep me working for him/ her. Yes, tax incidence is meant to be borne by the persons who legally oblized to pay such direct / income taxes. In the case of indirect tax, for example, in the case of a sales tax or an increase in the sales tax rate on my purchases may not be borne by me. For certain products in respect of which my… [cont.]
Answered by sensekonomikx - Thu Feb 7 21:56:54 2008
Q. What is it meant by tax incidence? Do the people who are legally required to pay a tax always bear the burden of the tax? Please explain briefly! Thanks!
Asked by tracy1613 - Thu Feb 7 19:58:42 2008 - - 2 Answers - 0 Comments
A. Meaning of tax incidence is the ultimate sharing of the burden of tax. While in the case of income tax or any other direct tax, the entire tax is borne actually by the targetted tax payer (tax on my income/ estate is what I pay as tax on my income / estateand I can shift this burden to another, except when because of the increase in income tax also results in an increase in my salary from my employer who wants to keep me working for him/ her. Yes, tax incidence is meant to be borne by the persons who legally oblized to pay such direct / income taxes. In the case of indirect tax, for example, in the case of a sales tax or an increase in the sales tax rate on my purchases may not be borne by me. For certain products in respect of which my… [cont.]
Answered by sensekonomikx - Thu Feb 7 21:56:54 2008
Economics help; tax incidence?
Q. I need some help with this, thank you so much! Demand curve for distilled liquor is P=27 - 1/2Qd Supply Curve is P = 3 + (3/2)Qs 1. Algebraically find the equilibrium prices and quantity. (Do I just set the two equal to each other? not sure..) 2. ..How do I find the statutory incidence given varying tax rates Thank you!!!
Asked by bloomsgal8 - Thu May 29 01:07:13 2008 - - 1 Answers - 0 Comments
A. 1) 27-Q/2=3+3Q/2 2Q=24 Q=12 P=21 2) To find out - you should specify on whom initial tax will be levied, on seller or buyer. If on seller then supply becomes P+T=3+3Q/2 or P=3-T+3Q/2 And equilibrium 3-T+3Q/2=27-Q/2 Q=12+T/2 P=21-T/4 But if on buyer then demand becomes P-T=27-Q/2 or P=27+T-Q/2 And equilibrium 27+T-Q/2=3+3Q/2 Q=12+T/2 P=21+3T/4
Answered by Yuri - Thu May 29 11:43:48 2008
Q. I need some help with this, thank you so much! Demand curve for distilled liquor is P=27 - 1/2Qd Supply Curve is P = 3 + (3/2)Qs 1. Algebraically find the equilibrium prices and quantity. (Do I just set the two equal to each other? not sure..) 2. ..How do I find the statutory incidence given varying tax rates Thank you!!!
Asked by bloomsgal8 - Thu May 29 01:07:13 2008 - - 1 Answers - 0 Comments
A. 1) 27-Q/2=3+3Q/2 2Q=24 Q=12 P=21 2) To find out - you should specify on whom initial tax will be levied, on seller or buyer. If on seller then supply becomes P+T=3+3Q/2 or P=3-T+3Q/2 And equilibrium 3-T+3Q/2=27-Q/2 Q=12+T/2 P=21-T/4 But if on buyer then demand becomes P-T=27-Q/2 or P=27+T-Q/2 And equilibrium 27+T-Q/2=3+3Q/2 Q=12+T/2 P=21+3T/4
Answered by Yuri - Thu May 29 11:43:48 2008
Economics problem relating to the effect of a specific tax on cigarettes?
Q. The U.S. market for cigarettes is (where P is price per pack and Q is annual amount of packs sold annually in billions) Demand: Q = 16 -2P Supply: Q = 4P - 8 The market equilibrium would be $4.00 a pack and 8 billion packs a year. Now, what would the new equilibrium quantity and price be if the government imposed a producer tax of $2.40 a pack to pay for smoking illnesses? Lastly, what could be two possible methods to calculate the tax incidence on consumers and interpret this in the context of the problem.
Asked by Bryan - Wed Feb 10 23:40:41 2010 - - 1 Answers - 0 Comments
A. For that see I hope that it will be beneficial for you keep using answers.yahoo.com
Answered by AsHolly - Wed Feb 10 23:42:48 2010
Q. The U.S. market for cigarettes is (where P is price per pack and Q is annual amount of packs sold annually in billions) Demand: Q = 16 -2P Supply: Q = 4P - 8 The market equilibrium would be $4.00 a pack and 8 billion packs a year. Now, what would the new equilibrium quantity and price be if the government imposed a producer tax of $2.40 a pack to pay for smoking illnesses? Lastly, what could be two possible methods to calculate the tax incidence on consumers and interpret this in the context of the problem.
Asked by Bryan - Wed Feb 10 23:40:41 2010 - - 1 Answers - 0 Comments
A. For that see I hope that it will be beneficial for you keep using answers.yahoo.com
Answered by AsHolly - Wed Feb 10 23:42:48 2010
5. How do elastic demand and inelastic demand affect the incidence of tax?
Q. 5. How do elastic demand and inelastic demand affect the incidence of tax?
Asked by ELIZA JACKSON - Fri Mar 27 21:31:41 2009 - - 2 Answers - 0 Comments
A. If it is on the elastic part of the demand curve it will cause quantity demand to drop more than 1% than every 1% increase in price from the tax. If it is on the inelastic part of the demand curve then quantity demand will change less than 1% for every 1% change in price from the tax. For example preventing tobacco use through tax is not a good economic idea because it is an inelastic market, the quantity demand will change slower than the increase in price for every dollar taxed. However for example you also don't want to tax a market that is too elastic because then the quantity demand will drop too quickly for whatever little amount you tax off of it. Therefore taxing tobacco could be good for state revenue as you can make a ton of… [cont.]
Answered by notamargartet - Fri Mar 27 21:40:59 2009
Q. 5. How do elastic demand and inelastic demand affect the incidence of tax?
Asked by ELIZA JACKSON - Fri Mar 27 21:31:41 2009 - - 2 Answers - 0 Comments
A. If it is on the elastic part of the demand curve it will cause quantity demand to drop more than 1% than every 1% increase in price from the tax. If it is on the inelastic part of the demand curve then quantity demand will change less than 1% for every 1% change in price from the tax. For example preventing tobacco use through tax is not a good economic idea because it is an inelastic market, the quantity demand will change slower than the increase in price for every dollar taxed. However for example you also don't want to tax a market that is too elastic because then the quantity demand will drop too quickly for whatever little amount you tax off of it. Therefore taxing tobacco could be good for state revenue as you can make a ton of… [cont.]
Answered by notamargartet - Fri Mar 27 21:40:59 2009
please answer my microeconomics question: calculating tax incidence?
Q. suppose that the government decides to charge beer consumers a tax. before the tax, 20,000 six-packs of beer are sold every week at a price of $6 per six-pack. after the tax, 12,000 six-packs of beer are sold every week; consumers pay $7 per six-pack and producers receive $3 per six-pack (after paying the tax). answer: the amount of the tax on a six-pack of beer is ___?___ per six-pack. of this amount, the burden that falls on consumer is ___?___ per six-pack, and the burden that falls on producers is ___?___ per six-pack.
Asked by dreamer - Sun Mar 1 21:22:46 2009 - - 1 Answers - 0 Comments
A. Assuming common linear demand and supply: The amount of the tax on a six-pack of beer is _$4_ per six-pack (7-3=4) Of this amount, the burden that falls on consumer is _$1_ per six-pack (7-6=1) And the burden that falls on producers is _$3_ per six-pack. (6-3=3)
Answered by Yuri - Sun Mar 1 22:58:01 2009
Q. suppose that the government decides to charge beer consumers a tax. before the tax, 20,000 six-packs of beer are sold every week at a price of $6 per six-pack. after the tax, 12,000 six-packs of beer are sold every week; consumers pay $7 per six-pack and producers receive $3 per six-pack (after paying the tax). answer: the amount of the tax on a six-pack of beer is ___?___ per six-pack. of this amount, the burden that falls on consumer is ___?___ per six-pack, and the burden that falls on producers is ___?___ per six-pack.
Asked by dreamer - Sun Mar 1 21:22:46 2009 - - 1 Answers - 0 Comments
A. Assuming common linear demand and supply: The amount of the tax on a six-pack of beer is _$4_ per six-pack (7-3=4) Of this amount, the burden that falls on consumer is _$1_ per six-pack (7-6=1) And the burden that falls on producers is _$3_ per six-pack. (6-3=3)
Answered by Yuri - Sun Mar 1 22:58:01 2009
Meaning of Incidence of Tax?
Q. Meaning of Incidence of Tax?
Asked by rajiv_mehta15 - Sun Feb 1 12:36:50 2009 - - 1 Answers - 0 Comments
A. Business Definition for: Incidence Of Tax used to indicate where the final burden of a tax lies. For example, the retailer is liable to collect and pay any sales tax to the tax collecting authority, but the tax itself is ultimately paid by the customer as it has been included in the retail sales price.
Answered by Felix Y - Tue Feb 3 06:19:09 2009
Q. Meaning of Incidence of Tax?
Asked by rajiv_mehta15 - Sun Feb 1 12:36:50 2009 - - 1 Answers - 0 Comments
A. Business Definition for: Incidence Of Tax used to indicate where the final burden of a tax lies. For example, the retailer is liable to collect and pay any sales tax to the tax collecting authority, but the tax itself is ultimately paid by the customer as it has been included in the retail sales price.
Answered by Felix Y - Tue Feb 3 06:19:09 2009
Is prevention of illness so important that government should heavily tax or limit some activities?
Q. Health care issues: Is prevention of illness and injury, which (if successful) reduces health care costs, so important that government should heavily tax or limit activities which, statistically speaking, lead to such illness and/or injury? My hypothesis here is that America is allowing irresponsible behavior in multiple areas to create health care costs which we are then asking the health insurance industry to pay for, when government should be heavily taxing and/or limiting the irresponsible behavior to prevent the costs. Examples: 1. drunk driving. may cause half of all auto accidents and related health care bills. Should government heavily tax alcohol and use the funds to pay for these health care costs? 2. tobacco. plainly… [cont.]
Asked by Spock (rhp) - Sun Jun 28 11:50:50 2009 - - 10 Answers - 0 Comments
Q. Health care issues: Is prevention of illness and injury, which (if successful) reduces health care costs, so important that government should heavily tax or limit activities which, statistically speaking, lead to such illness and/or injury? My hypothesis here is that America is allowing irresponsible behavior in multiple areas to create health care costs which we are then asking the health insurance industry to pay for, when government should be heavily taxing and/or limiting the irresponsible behavior to prevent the costs. Examples: 1. drunk driving. may cause half of all auto accidents and related health care bills. Should government heavily tax alcohol and use the funds to pay for these health care costs? 2. tobacco. plainly… [cont.]
Asked by Spock (rhp) - Sun Jun 28 11:50:50 2009 - - 10 Answers - 0 Comments
How to calculate accrued interest on Post office Recurring Deposit for IT purpose?
Q. In case of PO Recurring deposit accounts, the principal amount and the interest thereon is payable at the maturity only and the post offices neither have any ready reckoner , like NSCs, for calculation of accrued interest nor issue any certificate for such interest. How to work out accrued interest on RD deposits for showing it under item Income from other sources. If entire interest is to be shown in the year of actual receipt, instead of accrual basis, it may lead to heavy tax incidence at higher rate.
Asked by Gopal A - Tue Sep 9 06:55:34 2008 - - 3 Answers - 0 Comments
A. For an amount of Rs 100/- pm the annual interest would be about Rs 53/- After 5 years Rs 100/- p.m. becomes Rs. 7289/-.
Answered by HMT - Tue Sep 9 14:16:48 2008
Q. In case of PO Recurring deposit accounts, the principal amount and the interest thereon is payable at the maturity only and the post offices neither have any ready reckoner , like NSCs, for calculation of accrued interest nor issue any certificate for such interest. How to work out accrued interest on RD deposits for showing it under item Income from other sources. If entire interest is to be shown in the year of actual receipt, instead of accrual basis, it may lead to heavy tax incidence at higher rate.
Asked by Gopal A - Tue Sep 9 06:55:34 2008 - - 3 Answers - 0 Comments
A. For an amount of Rs 100/- pm the annual interest would be about Rs 53/- After 5 years Rs 100/- p.m. becomes Rs. 7289/-.
Answered by HMT - Tue Sep 9 14:16:48 2008
Suppose that the government decides to charge cola consumers an excise tax.?
Q. Suppose that the government decides to charge cola consumers an excise tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6 million cases of cola are sold every month; consumers pay $4.00 per case and producers receive $2.00 per case. Use this information to answer the following questions. What is the incidence of the tax that falls on consumers? Answer: $___ per case of cola
Asked by ADIB - Thu Sep 18 23:18:41 2008 - - 3 Answers - 0 Comments
A. That's really more of an economics question than a sales tax question. What you want to figure out is: how much tax money has been collected, and of that money, how much comes from the buyers (i.e. the extent to which they keep buying even though the price is high) versus the sellers (the extent to which they cut prices even though it reduces profits).
Answered by Byrne H - Fri Sep 19 17:11:19 2008
Q. Suppose that the government decides to charge cola consumers an excise tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6 million cases of cola are sold every month; consumers pay $4.00 per case and producers receive $2.00 per case. Use this information to answer the following questions. What is the incidence of the tax that falls on consumers? Answer: $___ per case of cola
Asked by ADIB - Thu Sep 18 23:18:41 2008 - - 3 Answers - 0 Comments
A. That's really more of an economics question than a sales tax question. What you want to figure out is: how much tax money has been collected, and of that money, how much comes from the buyers (i.e. the extent to which they keep buying even though the price is high) versus the sellers (the extent to which they cut prices even though it reduces profits).
Answered by Byrne H - Fri Sep 19 17:11:19 2008
Can i claim my sister's tuition?
Q. she is single has a job, lives on her own and files her own taxes. she is not my dependant so i don't claim her as such. but i pay her college tuition. can i have a legitimate claim on the tuition fees and how. if i don't can she claim the fee's herself to reduce her tax incidence? (i figure sombody should)
Asked by hnm - Sat Feb 10 02:08:32 2007 - - 3 Answers - 0 Comments
A. If she is not your dependent on your return then no you cannot claim her tuition even if you paid it. She can claim the tuition for herself on her own return, if she has any tax liability to reduce.
Answered by Turtle - Sat Feb 10 02:14:50 2007
Q. she is single has a job, lives on her own and files her own taxes. she is not my dependant so i don't claim her as such. but i pay her college tuition. can i have a legitimate claim on the tuition fees and how. if i don't can she claim the fee's herself to reduce her tax incidence? (i figure sombody should)
Asked by hnm - Sat Feb 10 02:08:32 2007 - - 3 Answers - 0 Comments
A. If she is not your dependent on your return then no you cannot claim her tuition even if you paid it. She can claim the tuition for herself on her own return, if she has any tax liability to reduce.
Answered by Turtle - Sat Feb 10 02:14:50 2007
can i contact somebody who has done m.com or tax ppl?
Q. i am currently doing m.com frm du n i ma really struggling abt my preparation for "principles and practice of taxation and indian tax system" so if anybody can help me plz plz plz... the course content is : 1) international comparision of tax; tax-GDP ratios, 2)tax base and tax policy- determinants of tax yeilds, classification of tax, 3) tax equity: benefit principle of taxation, ability to pay principle of taxation 5) Incidence of tax 6) trends in GDP-Tax ratios- relative roles of direct and indirect taxes, distribution of tax burden- buoyancy and elasticity of tax revenues 7) tax evasion and generation of black money
Asked by jasvir - Wed Dec 9 10:57:52 2009 - - 1 Answers - 0 Comments
A. Please re-post this in plain English. Capitalization, grammar, paragraph structure, and punctuation count.
Answered by Bostonian In MO - Wed Dec 9 11:08:18 2009
Q. i am currently doing m.com frm du n i ma really struggling abt my preparation for "principles and practice of taxation and indian tax system" so if anybody can help me plz plz plz... the course content is : 1) international comparision of tax; tax-GDP ratios, 2)tax base and tax policy- determinants of tax yeilds, classification of tax, 3) tax equity: benefit principle of taxation, ability to pay principle of taxation 5) Incidence of tax 6) trends in GDP-Tax ratios- relative roles of direct and indirect taxes, distribution of tax burden- buoyancy and elasticity of tax revenues 7) tax evasion and generation of black money
Asked by jasvir - Wed Dec 9 10:57:52 2009 - - 1 Answers - 0 Comments
A. Please re-post this in plain English. Capitalization, grammar, paragraph structure, and punctuation count.
Answered by Bostonian In MO - Wed Dec 9 11:08:18 2009
Microeconomics excise tax question?
Q. Can someone explain this one to me? The government imposes an excise tax on the sales of all college textbooks. Before the tax was imposed, 1 million textbooks were sold every year at a price of $50. After the tax is imposed, 600,000 books are sold yearly; students pay $55 per book, $30 of which the publishers recieve. Explain: a.whether the incidence of the tax falls more heavily on comsumers or producers, b.why government revenue raised from the tax is not a good indicator of the true cost of the tax, and c.what missed opportunity,or inefficiency,arises. Thanks for any help!
Asked by Bex - Tue Apr 28 11:31:09 2009 - - 2 Answers - 0 Comments
A. This isn't real world, but here goes... a. more heavily on producers (this is rarely the case in real world) b. the tax revenue raised affects supply and demand c. less textbooks produced, probably the paper and ink go now to other industries
Answered by Chuckie O - Tue Apr 28 11:46:31 2009
Q. Can someone explain this one to me? The government imposes an excise tax on the sales of all college textbooks. Before the tax was imposed, 1 million textbooks were sold every year at a price of $50. After the tax is imposed, 600,000 books are sold yearly; students pay $55 per book, $30 of which the publishers recieve. Explain: a.whether the incidence of the tax falls more heavily on comsumers or producers, b.why government revenue raised from the tax is not a good indicator of the true cost of the tax, and c.what missed opportunity,or inefficiency,arises. Thanks for any help!
Asked by Bex - Tue Apr 28 11:31:09 2009 - - 2 Answers - 0 Comments
A. This isn't real world, but here goes... a. more heavily on producers (this is rarely the case in real world) b. the tax revenue raised affects supply and demand c. less textbooks produced, probably the paper and ink go now to other industries
Answered by Chuckie O - Tue Apr 28 11:46:31 2009
Econ 1 question about taxes?
Q. I. Those who pay the tax also will bear most of the burden. II. Consumers always bear all the burden of a tax. III. To know whether consumers or producers have a higher tax incidence, you must know the equilibrium price each pays before AND after a tax. which one is true?
Asked by Jane - Sun Oct 5 22:43:44 2008 - - 2 Answers - 0 Comments
A. "III" is right one. To know whether consumers or producers have a higher tax incidence, you must know the equilibrium price each pays before AND after a tax This helps you to calculate how tax burden is distributed between consumer and producer. Another approach is using elasticity concept. I - False II - False III - True.
Answered by Yuri - Thu Oct 9 05:01:49 2008
Q. I. Those who pay the tax also will bear most of the burden. II. Consumers always bear all the burden of a tax. III. To know whether consumers or producers have a higher tax incidence, you must know the equilibrium price each pays before AND after a tax. which one is true?
Asked by Jane - Sun Oct 5 22:43:44 2008 - - 2 Answers - 0 Comments
A. "III" is right one. To know whether consumers or producers have a higher tax incidence, you must know the equilibrium price each pays before AND after a tax This helps you to calculate how tax burden is distributed between consumer and producer. Another approach is using elasticity concept. I - False II - False III - True.
Answered by Yuri - Thu Oct 9 05:01:49 2008
I need help with these Economy questions?
Q. 1. How can you determine the incidence of tax? 2. what are entitlement programs?give 3 examples. 3. list 4 sources of state government revenue. 4. describe 3 problems that limit fiscal policy. 5. how has the national debt measured? 6. what is the difference between the national debt and the budget deficit? 7. what options does the gov. have to respond to an annual budget deficit? thank you if you can answer any or all of these :-)
Asked by Monet491 - Fri Jun 25 01:05:32 2010 - - 2 Answers - 0 Comments
A. 1. Read this for an example for question 1 Investopedia Says: Tax incidence reveals which group, the consumers or producers, will pay the price of a new tax. For example, the demand for cigarettes is fairly inelastic, which means that despite changes in price, the demand for cigarettes will remain relatively constant. Let's imagine the government decided to impose an increased tax on cigarettes. In this case, the producers may increase the sale price by the full amount of the tax. If consumers still purchased cigarettes in the same amount after the increase in price, it would be said that the tax incidence fell entirely on the buyers.
Answered by LOL Ape - Fri Jun 25 01:33:12 2010
Q. 1. How can you determine the incidence of tax? 2. what are entitlement programs?give 3 examples. 3. list 4 sources of state government revenue. 4. describe 3 problems that limit fiscal policy. 5. how has the national debt measured? 6. what is the difference between the national debt and the budget deficit? 7. what options does the gov. have to respond to an annual budget deficit? thank you if you can answer any or all of these :-)
Asked by Monet491 - Fri Jun 25 01:05:32 2010 - - 2 Answers - 0 Comments
A. 1. Read this for an example for question 1 Investopedia Says: Tax incidence reveals which group, the consumers or producers, will pay the price of a new tax. For example, the demand for cigarettes is fairly inelastic, which means that despite changes in price, the demand for cigarettes will remain relatively constant. Let's imagine the government decided to impose an increased tax on cigarettes. In this case, the producers may increase the sale price by the full amount of the tax. If consumers still purchased cigarettes in the same amount after the increase in price, it would be said that the tax incidence fell entirely on the buyers.
Answered by LOL Ape - Fri Jun 25 01:33:12 2010
If both the supply and the demand increase, the market price will?
Q. a. fall whether or not the supplpy curve is price inelastic b. fall only if the supply is price inelastic c. rise only in the case of a perfectly price inelastic supply d. rise only if the demand is price inelastic e. rise or fall, depending on the magnitude of the shifts If the incidence of a tax per unit of output is shifted completely onto the producer then: a. demand is perfectly price inelastic b. supply is price inelastic c. supply is perfectly price inelastic d. supply and demand are price inelastic e. either a or c
Asked by Need answer1 - Sun Sep 24 14:49:50 2006 - - 1 Answers - 1 Comments
A. e &...d??? idk i know nuttin about that stuff im just guessin
Answered by Banana91 - Sun Sep 24 14:55:33 2006
Q. a. fall whether or not the supplpy curve is price inelastic b. fall only if the supply is price inelastic c. rise only in the case of a perfectly price inelastic supply d. rise only if the demand is price inelastic e. rise or fall, depending on the magnitude of the shifts If the incidence of a tax per unit of output is shifted completely onto the producer then: a. demand is perfectly price inelastic b. supply is price inelastic c. supply is perfectly price inelastic d. supply and demand are price inelastic e. either a or c
Asked by Need answer1 - Sun Sep 24 14:49:50 2006 - - 1 Answers - 1 Comments
A. e &...d??? idk i know nuttin about that stuff im just guessin
Answered by Banana91 - Sun Sep 24 14:55:33 2006
From Yahoo Answer Search: 'tax incidence'
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Brookings Institution Shortly before this incidence , millions of US dollar donor-funds meant for treating AIDS, Tuberculosis and Malaria were stolen. To date, the suspects are at ...
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There are many income tax systems exist in the financial market with different degrees of . tax incidence. . Income tax time or financial closing dates are one of the hectic and stressful times of the year as individuals, legal entities or ...
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