In order to determine the effect of the tax on the demand and supply graph, please check the attached image.
A tax is a form of transfer to wealth from businesses to the government. Taxes increase the price of goods and services. As a result of the tax levied on the producers of automobile tires, the cost of making tires would increase. This would make producing tires more expensive.
As a result of the increase in the cost of making tires, the production of tires would fall. As a result, there would be a leftward shift of the supply curve. This would lead to a rise in equilibrium price and a decrease in equilibrium quantity.
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Answer:
The correct answer is option C.
Explanation:
The utility from consuming two candy bars is 20 units.
The utility from consuming three candy bars is 25 units.
The marginal utility of the third candy bar will be the increase in the utility on consuming additional unit of candy bar.
It can be calculated by the utility derived from consuming three bars minus the utility derived from consuming two bars.
Marginal utility of third candy bar
=25 units - 20 units
=5 units
So, the correct answer is 5 units.
Answer:
D. $210 million
Explanation:
Data given
Decrease in deferred tax assets = $30
Increase in deferred tax liabilities = $60
Taxable income = $300
Tax rate = 40%
The computation of total income tax expense is given below:-
Income tax Payable = $300 × 40%
= $120
Total income tax expenses = Income tax Payable + Decrease in deferred tax assets + Increase in deferred tax liabilities
= $120 + $30 million + $60 million
= $210 million
So, for computing the total income tax expense we simply applied the above formula.