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
Vika [28.1K]
3 years ago
5

Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold ever

y year at a price of $5 per case. After the tax, 44 billion cases of cola are sold every year; consumers pay $6 per case, and producers receive $2 per case (after paying the tax).
The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $_________ per case, and the burden that falls on producers is $ _____ per case.


The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.


a. True

b. False
Business
1 answer:
Georgia [21]3 years ago
4 0

Answer:

U.S. Tax Burden on Cola:

The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.

The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

a. True

b. False

Explanation:

The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5).  However, the cash received by producers reduced by $3 from $5  to $2.  This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).

This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.

"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone.   This because the price of cola would have increased to $9 per unit.  Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.

You might be interested in
With brick-and-mortar toy stores closing, board game manufacturers expect to have trouble finding as many consumers interested i
Oxana [17]

Answer:

This is how the market for board games would be affected in the explanation below

Explanation:

Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.

3 0
2 years ago
For federal tax purposes, which of the following is true regarding lump-sum life insurance benefits?
Lorico [155]

Based on the information given, it should be noted that all proceeds are income tax free in the year that they're received.

<h3>What is tax?</h3>

A tax simply means a compulsory levy that's paid by the people or companies to the government. It's important to achieve economic development.

For federal tax purposes regarding lump-sum life insurance benefits, it should be noted that all proceeds are income tax free in the year that they're received.

Learn more about tax on:

brainly.com/question/9437038

7 0
2 years ago
HELP ME PLSSS SOMEONE HELPP ILL GIVE BRAINLIEST
SIZIF [17.4K]

Answer:

$7,875

Explanation:

Total car sales in January: $112,500

Commission at the  rate of 7%,

Salary for January is :

7 percent of $112,500

=7/100 x $112,500

=0.07 x $112,500

=$7,875

3 0
3 years ago
NEED HELP , por favor???
NikAS [45]

Answer:

The answer is self esteem.

Explanation: It's the self evalution of your worth how you feel about you and the way you carry it.

8 0
3 years ago
Read 2 more answers
What new business strategies allowed businesses to weaken or eliminate competition?.
Rudiy27

Answer:

produce unique products

Explanation:

when a business produce unique products can't be threatened by substitution products

6 0
1 year ago
Read 2 more answers
Other questions:
  • When designing a case management solution to increase agent productivity, which service cloud features should you consider first
    14·1 answer
  • Imagine you are looking at a bottle of salad dressing containing oil, vinegar, and water. you notice that the oil sits on "top"
    13·1 answer
  • Problem 9-20 Two investment advisers are comparing performance. One averaged a 16% rate of return and the other a 15% rate of re
    14·1 answer
  • Mars, America’s second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the t
    11·2 answers
  • Britney, a teenager, starts her own business of selling cupcakes to coffee shops and restaurants. she strives to increase either
    15·1 answer
  • One important purpose of a brand is to
    10·1 answer
  • Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once.
    15·1 answer
  • 4. Give some examples of “effects of Globalization in the Government”.
    7·1 answer
  • Last year the Baldwin company increased their equity. In 2020 their equity was $49,131. Last year (2021) it increased to $54,834
    5·1 answer
  • When Bonita put together a research report for her company, what would she have included in the references section?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!