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Fudgin [204]
3 years ago
10

After a tax is imposed on the buyers of bottled water, the price buyers pay is $2.50 per bottle and the price sellers receive is

$1.75. If the equilibrium price was $2.00 before the tax was imposed on the market, how much is the tax per unit
Business
1 answer:
Dafna11 [192]3 years ago
8 0

Answer:

Tax per unit = $0.75

Explanation:

Given:

Buyers pay per unit = $2.50

Sellers receive per unit = $1.75

Equilibrium price = $2.00

Tax per unit = ?

Computation of tax per unit:

Tax per unit = Margin between Buyers pay and Sellers receive.

Tax per unit = Buyers pay per unit - Sellers receive per unit

Tax per unit = $2.50 - $1.75

Tax per unit = $0.75

You might be interested in
The city of Springvale imposes a net income tax on businesses operating within its jurisdiction. The tax equals 1% of income up
sveta [45]

Answer:

$11,230

Explanation:

The city of Springvale imposed a net income tax on all businesses

Each business will make a payment of 1% for any amount up to $100,000 and 1.5% for any amount above $100,000

The net income generated by Springvale Bar and Grill is

= $782,000- $100,000

= $682,000

Therefore, it's city income tax is calculated as follows

(1/100+100,000) + ( 1.5/100+682,000)

( 0.01+100,000) + ( 0.015+682,000)

= 1000 + 10,230

= $11,230

Hence, Springvale Bar and Grill will pay a net income tax of $11,230

4 0
3 years ago
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month
kkurt [141]

Answer:

$114 unfavorable

Explanation:

For computing the overall variable overhead efficiency variance  first we have to need to find out the standard variable overhead rate which is shown below:

= ($11,680 + $41,900) ÷ 4,700 hours

= $11.4

Now the  variable overhead efficiency variance is

= standard variable overhead rate × (Actual machine hours - standard machine hours)

= $11.4 × (4,740 machine hours - 4,730 machine hours)

= $114 unfavorable

This unfavorable indicates the actual hours are more than the standard hours

6 0
3 years ago
An income tax is progressive if the
UkoKoshka [18]

Answer:

Option C- An income tax is progressive if the percentage of income paid as taxes increases as income increases.

Explanation:

Majorly, there are three types of Tax systems; these are:  Progressive, regressive and proportional.

A tax in which the tax rate increases as the taxable amount increases is known as a progressive tax.

The term "progressive" refers to the way the tax rate progresses from low to high, such that a taxpayer's average tax rate is less than the person's marginal tax rate.

Also,a progressive tax is  applicable to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. It is imposed with the aim of reducing the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay.

Thus, an income tax is progressive if the percentage of income paid as taxes increases as income increases.

6 0
3 years ago
In situations of sticky prices and negative demand shocks, we would expect firms to A. deplete inventories before increasing pro
valina [46]

Answer:

C. Build up inventories before reducing production.

Explanation:

Demand shocks happen when there is a sudden and considerable shift in the patterns of private spending, either in the form of consumer spending from consumers or investment spending from businesses. An economic downturn in the economy of a major export market can create a negative shock to business investment, particularly in export industries. A crash in stock or home prices can cause a negative demand shock as households react to a loss of wealth by cutting back sharply on consumption spending. Supply shocks to consumer commodities with price inelastic demand, such as food and energy, can also lead to a demand shock by reducing consumers real incomes. Economists sometimes refer to demand side shocks as "non-technological shocks." We need to build up inventories before reducing production.

5 0
3 years ago
"Our goal is to make add-on sales during 85% of sales. If you make35 sales. How many add-0n sales do you need to make to meet th
8090 [49]

Answer:

30

Explanation:

Add-On Sales Goal =85% of Sales

If there were a total of 35 sales, in order to meet the goal, we would require to make an add-on sales during 85% of 35 sales.

Now:

85% of 35=0.85 X 35

=29.75

This is approximately 30.

Therefore, you would need to make 30 add-on sales to meet the goal.

3 0
3 years ago
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