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
djverab [1.8K]
3 years ago
9

5. Calculating tax incidence Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 40 billion

cases of cola were sold every year at a price of $5 per case. After the tax, 34 billion cases of cola are sold every year; consumers pay $6 per case (including the tax), and producers receive $2 per case. 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. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers. True False
Business
1 answer:
vazorg [7]3 years ago
4 0

Answer:

The amount of tax on a case of Cola is ;

= Selling price - Producer gain

= 6 - 2

= $4

The burden that falls on consumers is;

= Current selling price - Previous selling price

= 6 - 5

= $1

The burden that falls on the producers is;

= Selling price less consumer tax - Producer gain

= 5 - 2

= $3

The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers. <u>FALSE. </u>

Whether the tax is on the producer or on the consumer makes no difference because the quantity sold will be the same. The statement is therefore false.

You might be interested in
What was Thomas Malthus’s theory of population growth?
Rufina [12.5K]

Answer:

A population would grow faster than its ability to feed itself.

Explanation:

Thomas Malthus' theory, in my personal beliefs, is remarkably accurate and quite rational. He argued that if one were to have a country/population left unchecked, as in without any form of administration, government, or central authority to balance it, that a population would thus outgrow its resources and thus result in overpopulation and a lack of necessities... something that may, perhaps, lead to eventual extinction.

This is fairly factual when you think of the contemporary age. The earth was previously believed to have a carrying capacity of about 2-40 billion people, an argument that eventually centered on around 7 billion. Today, the earth's maximum carrying capacity is generally percieved to be about 9 billion people. In this age, we currently are nearing 8 billion.

This. Is. An. Issue.

A plethora of earth's resources that life itself depends on is LIMITED. Our freshwater reserves are limited. The amount of animals on this planet, a source of food, is <em>also </em>limited. The amount of plants on this planet, significant sources of energy, food, oxygen, and all sorts of natural processes that keep everything alive, are, unfortunately, limited.

This demands that humans figure a way to require less of these precious resources, fast. By the year of 2150, we'll likely have surpassed our carrying capacity.

For the issue of food, there are options. The primary issue is that humans are omnivores, as in, we love both plants AND animals... in our stomach's, of course. A prime example is myself! Personally, I couldn't live without beef, but I <em>definitely </em>couldn't or wouldn't want to survive without spinach and broccoli, because they are absolutely delicious.

However, despite humans being omnivores, we stubbornly refuse to eat our veggies. . . meaning a mass majority of us prefer to eat meat. We breed our animals to have offspring, giving us more meat. We generically enhance or even create our meat. We love meat.

The issue being that meat is a terrible source of energy. Remember, energy comes from sources of life itself, like the sun! PLANTS take the mass majority of this energy in, not animals. Animals EAT the plants, to where as much as 80% of that initial energy source is lost, disappearing into nothing, and meaning only roughly 20% is absorbed into the animal upon eating the said plant. Then, and only then, HUMANS come to eat the animal, in which 80% of that initial 20% is also lost between these stages.

As you can see, humans end up with barely any amount of this vital energy, simply because we love meat. We feed the plants to the animals to keep them healthy so WE can then eat the said animals, thus resulting in a HUGE loss of energy. We use our land for pastures. We give other resources (like water) to the animals, again, so we can eventually consume them.

The earth is going to run out of resources at one point or another, but our current consumption habits will likely hasten this process as far as freshwater and food.

Ofc, it shouldn't need to be said that if we were ALL to switch to primarily plant-only consumption, we'd probably be set. Getting rid of all our pastures and replacing them with massive farms would give is a surplus of plants, which are remarkably better sources of energy and will thus be able to sustain humans much, much longer. We won't have to worry as much about starving.

Then again, you must ALSO worry about the fragility of plants. They can easily be detroyed by natural disastors and are dependant upon environmental conditions such as weather temperature, climate, and soil. These factors are very limiting, but then you must additionally remember the amount of care they require, as well as they are extremely vunerable to mass destruction (like droughts, burning, flooding, etc., which can wipe out a LOT at once).

Obviously it's a give-or-take thing.

Malthus said it right, three hundred years ago.

I get the length of this post was probably uneccesary but you asked a very good question that gave me an excuse to cover something in-depth.

I am inevitable.

~Troy

3 0
3 years ago
Using real GDP to compare the level of economic well-being in two countries may be misleading because the value of ______ contri
julsineya [31]

Answer:

The correct answer is letter "C": leisure.

Explanation:

In Business, leisure can be defined as the time people spend when they are not working or engaged in economic activities. With no doubt, the time people spend off work determines how they can perceive their well-being. Though, as the Gross Domestic Product (<em>GDP</em>) of a country is considered to measure people's well being but as the GDP does not include leisure, the GDP source might not be the most accurate for that purpose.

7 0
2 years ago
The Durham-Mills Self-Administering Test of Mental Ability was the first group-administered mental ability test to have widespre
forsale [732]

Answer:

False

Explanation:

The Otis Self-Administering Test of Mental Ability was the first group-administered mental ability test to have widespread use in industry.

This test was first developed in 1922 by Arthur Otis. It was first designed to measure students' general school abilities. Otis's first tests were designed for the Army in 1917 and were known as the Alpha tests (for those who could read) and the Beta tests (for those who couldn't read).

7 0
3 years ago
Wyatt's annual take-home pay is $39,000. what is the maximum amount that he can spend per month paying off credit cards and loan
sukhopar [10]
650 is the answer, hope this helps 
3 0
3 years ago
Read 2 more answers
How can the use of new technology in industry benefit the US government
ahrayia [7]

Answer:they can track things

Explanation: if they need info all they need to do is hack

8 0
3 years ago
Other questions:
  • There are eight parts of the planning phase of an audit. which parts involve the evaluation of​ risk? ​
    9·1 answer
  • BJT Corporation is owned 40 percent by Bill, 30 percent by Jack, and 30 percent by the Trumpet Partnership. Bill and Jack are fa
    9·1 answer
  • Which one of the following statements about protective tariffs is correct?
    14·1 answer
  • The strategic alliance between Coca-Cola and Nestlé has spanned a period of over 20 years due to the fact that both companies be
    10·1 answer
  • On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting e
    6·1 answer
  • After a school district's annual _______ revealed potential safety vulnerabilities associated with dark and isolated parking lot
    6·1 answer
  • An office management firm has developed a system for efficiently organizing small medical and dental practices both through prop
    14·1 answer
  • A popular hotel has continued to lose business in its room service food sales over the last five years. Using the Six Sigma DMAI
    7·1 answer
  • A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer o
    10·1 answer
  • The reserve requirement is 15 percent. Lucy deposits $600 into a bank. By how much do excess reserves change
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!