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
Anna71 [15]
3 years ago
7

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 50,000 bottles of wine were sold every

week at a price of $5 per bottle. After the tax, 44,000 bottles of wine are sold every week; consumers pay $6 per bottle (including the tax), and producers receive $2 per bottle. The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been larger if
Business
1 answer:
grigory [225]3 years ago
6 0

Answer:

$4

$1 and $3

False

Explanation:

As per the data given in the question,

a)

Amount of tax for each bottle is $4 because the sellers are receiving $2 and buyers are paying $6. Therefore,

Amount of the tax on a bottle of wine is $6 - $2 = $4

b)

Burden on the consumer = $6 - $5

= $1

Burden on the seller = $4 - $1

= $3

c)

False, because the tax incidence depends on the flexibility or elasticity  of market.

You might be interested in
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
sertanlavr [38]

Answer:

$9.687

Explanation:

Given:

Year 3 dividend = $1.00

Year4&5 growth rate = 17%

Constant rate = 7%

Required return rate = 16%

Year 4 dividend wil be:

D4 = 1.00 * 1+growth rate

= 1.00 * (1+0.17)

= $1.17

Year 5 dividend=

D5 = $1.17 * (1+0.17)

= $1.3689

Value of stock after year 5 will be given as:

\frac{D5 * (1+growth rate)}{required return - growth rate}

= \frac{1.3689*(1+0.07)}{0.16-0.07}

= $16.2747

For the current value of stock, we have:

Cv= Fd* Pv of discounting factor

Where Cv = current value of stock

Fd = future dividend

Pv = Present value of discounting factor

Therefore,

C_v = \frac{1.00}{1.16^3} + \frac{1.17}{1.16^4} + \frac{1.3689}{1.16^5} + \frac{16.2746}{1.16^5}

=$9.6871382455

≈ $9.687

The value of stock today =

$9.687

8 0
3 years ago
How do u know charmed life caitlin's lucky charm is fiction?
Diano4ka-milaya [45]
I don't know that book, but you know something is fiction when it's something that simply can not happen in real life, also if it's based on a character, like Sammy took a bath when he finished playing soccer, unlike dolphins are mammals, which is nonfiction. Hope this helps! Please rate brainiest answer!
7 0
3 years ago
The name group of explorers that Louiseana purcha
sdas [7]
It was called the “ Lewis and Clark Expedition” or “ The Crops Of Discovery”. Hopefully this helped!!
4 0
3 years ago
what ammendment isthisSixteen-year old Ryan is the captain of the football team. Before the Friday night game, he and his teamma
ad-work [718]
The fourth amendment constitutes this.
7 0
2 years ago
What is the principle of quality? What is the principle of quantity? Give an example in which a physical activity professional w
QveST [7]

Answer:

The principle of quality states that the experiences that engage us in the most critical components of an activity are most likely to increase our capacity to perform that activity. Critical components are the elements of an activity that are most important for performing it at a high level. To be really good at an activity, you must focus on what factor you need most and improve that area.The principle of quantity states that when all other factors are equal, increasing the frequency of our engagement with the critical components of an activity usually  

results in the largest performance improvement in that activity. Generally, the performer whose experiences have engaged her most often in the critical components of an activity usually becomes the most competent in that activity.A physical activity professional asked to create a plan to decrease the time in a marathoner’s performance would begin by conducting a analysis. The critical components in this activity relate to physical performance capacity more than skill.  

Explanation:

4 0
3 years ago
Other questions:
  • Suppose there are 100 consumers in the computer speaker market, each with an identical demand curve given by Qi = 10 – 0.1P, whe
    15·1 answer
  • You want to invest in a stock that pays​ $2.00 annual cash dividends for the next four years. At the end of the four​ years, you
    13·1 answer
  • Unlike advertising and sales promotion, personal selling can respond only to the questions and objections that the copywriter th
    13·1 answer
  • Policies that require countries to privatize state-run firms, end subsidies, reduce tariff barriers, shrink the size of the stat
    8·1 answer
  • An increase demand for any good or services is reflected graphically as:______.
    11·1 answer
  • Barry is a self-employed attorney who travels to New York on a business trip during the year. Barry's expenses were as follows:
    9·1 answer
  • Adam and Brittany both recently started new jobs. Both have determined that they should save 10 percent of their monthly income
    15·2 answers
  • What should you do after attending a college fair?
    13·2 answers
  • SEND HELP PERSONAL FINANCE TIMED TEST
    5·1 answer
  • After firm A producing one good acquired another firm B producing another good, it lowered the prices for the bundle of goods. O
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!