1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kodGreya [7K]
3 years ago
12

Ken places a $20 value on a cigar, and Mark places a $17 value on it. The equilibrium price for this brand of cigar is $15. Supp

ose the government levies a tax of $3 on each cigar, and the equilibrium price of a cigar increases to $18. How much consumer surplus will be lost because of the imposition of the tax relative to the consumer surplus when there is no tax?
Business
1 answer:
Lerok [7]3 years ago
3 0

Answer:

without tax:  $ 7 consumer surplus

with      tax:  $ 2 consumer surplus

differece: decrease of $5

Explanation:

the consumer surplus is the difference between the amount willing to pay for the good and the equilibrium price:

with no tax:

ken is willing to buy for 20 - 15 equilibrium price =  5

mark is willing to buy for 17 - 15 equilibrium price = 2

total 7

with taxes:

ken is willing to buy for 20 - 18 equilibrium price =  2

mark has no consumer surplus

total 2

difference: 5

You might be interested in
A volunteer must review photo identification for every taxpayer to deter the possibility of identity theft.
Serjik [45]

Answer:

Answer of the following statement is TRUE .

Explanation:

Identity theft remains an issue worldwide.

  • The interview should begin with demanding picture id to check the tax payer's and partner's identity on both the tax form.
  • Exceptions must only be provided under extreme situations for requesting photo Identification and for clients reported to the site upon approval by the site administrator.

8 0
3 years ago
What is the purpose of AH&LA ?
Kryger [21]
AH & LA was made to focus on the needs of every segment of lodging industry.
5 0
3 years ago
1046.01-1027.28A 3.25 percent Treasury bond is quoted at a price of 99.04. The bond pays interest semiannually. What is the curr
katen-ka-za [31]

Answer:

3.28%

Explanation:

Current yield = Annual Coupon payment / Market price of the bond

Annual Coupon payment = 3.25% of face value = 3.25% * $100

= $3.25 "value is assumed at $100"

Market price of the bond = $99.04

Therefore , Current yield = $3.25 / $99.04

= 0.03281

= 3.28%

4 0
3 years ago
Robin must decide on her overall pricing approach. She is a premium provider of food, but operates in an extremely competitive e
erica [24]

Answer: B

Sales objectives, competitive strategy, and promotional tactic

Explanation:

Sales objectives provides a clear direction for the expected a turnover a firm hopes to achieve over a period of time.

Competitive strategy refers to various strategies Robin hopes to utilize in getting a share from the market share. While promotional tactics refers to the various campaign and publicity aimed at introducing a product to the public.

Robin will hope to utilize this three concepts in order to successfully penetrate a highly competitive food market while also maintaining a certain market share.

8 0
3 years ago
Read 2 more answers
Trainers need to genuinely care about their clients. Ana adds that she learns a lot about people and earns their trust, then hel
tigry1 [53]

Answer:

a. Sensation-Feeling

Explanation:

Trainers need to genuinely care about their clients. Ana adds that she learns a lot about people and earns their trust, then helps them set practical goals that will help them methodically improve their fitness. Which problem-solving style is the best fit?

Anna made use of sensation-feeling style because she understood the needs of her clients and this can only be achieved by putting herself in the client shoes in order to experience their feeling and then coming up with a practical solution with solve any arising issue.

3 0
3 years ago
Other questions:
  • The rise of internet marketing has become particularly important in doing business in the b2b markets.
    11·1 answer
  • as their financial advisor what part of jim and Jack financial plan would you encourage them to work on
    10·1 answer
  • Which of the following statements is true of globalization?
    9·1 answer
  • Economists usually assume that production is subject to increasing opportunity costs because: a. higher production usually resul
    9·1 answer
  • May I have help with question 3 pleasem
    13·1 answer
  • Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes
    6·1 answer
  • 3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?
    8·2 answers
  • Joy and her manager agreed in January that in order to be ready to take on a new group project in June, Joy should complete a cl
    14·1 answer
  • A project is chartered to determine new ways to extend the product life of one of the company's medium-producing products. The p
    5·1 answer
  • If merchandise sold on account is returned to the seller, the seller may inform the customer of the details by issuing a
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!