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pogonyaev
2 years ago
14

A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generate

s tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax a. decreases total surplus from $3,000 to $1,800 per day. b. decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day. c. creates a deadweight loss of $15 per day. d. decreases consumer surplus by $645 per day.
Business
1 answer:
Karolina [17]2 years ago
6 0

The tax create a deadweight loss of $15 per day.

<h3>What is tax revenue?</h3>

A tax revenue means the sum derived from tax payers.

Dead weight loss = 0.5 * (P2 - P1) * (Q1 - Q2)

Dead weight loss = 0.5 * 0.25 * 120

Dead weight loss = $15

Hence, the tax creates a deadweight loss of $15 per day.

Therefore, the Option C is correct.

Read more about tax revenue

<em>brainly.com/question/25641320</em>

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Answer:

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Explanation:

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Answer:

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6 0
3 years ago
Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process?
german

Answer:

  • <em>She should research the cost of living of different locations to compare against the offered salaries.  </em>
  • <em>She should research the benefits included in each offer. </em>
  • <em>She should research the average salary of similar positions to see if the offers are fair. </em>

Explanation:

  • Remember, the cost living at the different locations is good basis to determine how much the actual value of he salary will be worth. For instance if location A pays her $5000 a month and her living expenses from the location takes about $4500, while location B pays her $3500 a month with a living expense of $1000, then she rather goes for location B she has more extra income.

  • Secondly, the benefits included in salaries is also to be considered. Does it includes medical insurance, transport allowance etc.?

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8 0
3 years ago
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