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
drek231 [11]
3 years ago
12

Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise tax on the welfare of

her constituents. You explained to the Senator that one way of measuring the impact on her constituents is to determine how the tax change affects the level of consumer surplus enjoyed by the constituents. Based on your arguments, you are given the go-ahead to conduct a formal analysis, and obtain the following estimates of demand and supply:
Qd=500-5P
Qs-2P-60
(a) What are the equilibrium quantity and equilibrium price? Graph your solution.
(b) If a $2 excise tax is levied on this good, what will happen to the equilibrium price and quantity? Show the changes in your graph from part (a).
(c) How much tax revenue does the government earn with the $2 tax?
Business
1 answer:
Molodets [167]3 years ago
8 0

Answer:

(a) P = 80 and Q= 100

(b) P = 80.57 and Q= 97.15

(c) Tax revenue = 194.3

Explanation:

Qd= 500 - 5P

Qs = 2P - 60

(a)

In equilibrium

Qd = Qs \\500 - 5P = 2P - 60 \\7P = 560 \\P = 80 \\

Putting this value of P back into the Qd or Qs equation

Qd = 500 - 5p\\Q = 500 - 5 (80) \\Q = 500 - 400 \\Q = 100

Thus, equilibrium price is 80 and equilibrium quantity is 100

(b)

When a tax is imposed the supply curve shifts up to the left by the amount of the tax. The new supply curve is given by

Qs = 2(P-2) - 60 \\Qs = 2p - 4 - 60 \\Qs = 2P - 64

The new equilibrium is

Qd = Qs \\500 - 5P = 2P - 64 \\7P = 564\\P = 80.57 \\

Substitute it into Qs or Qd we get

Q = 500 - 5 (80.57 ) \\Q = 97.15

(c)

Tax revenue = Tax rate * Quantity \\                      = 2 * 97.15\\                      = 194.3

You might be interested in
Corporate social responsibility: Group of answer choices
Misha Larkins [42]

Answer:

Letter e is correct.<em> Extends beyond ethics to include community, environment, and human rights</em>

Explanation:

Corporate social responsibility refers to the voluntary commitment that companies have to make a contribution to the development of the society in which it operates, in addition to reducing its environmental impacts and ensuring the preservation of human rights. This is when the company implements beneficial actions that exceed those required by law.

In a globalized world, there is legal pressure from consumers, institutions, NGOs and the media to make companies not only profitable but also voluntary contributors to building a more egalitarian society.

The benefits added to companies that practice corporate social responsibility are diverse, with emphasis on improving community value and improving stakeholder satisfaction and perception.

5 0
3 years ago
A representative from a prestigious industry association just emailed. She asks for your participation on an expert panel that w
AveGali [126]

Answer:

Thank the representative and accept the offer to cover expenses of your participation.

Explanation:

The response that would be most effective for helping you to make an ethical decision is to thank the representative and accept the offer to cover expenses of your participation.

For being invited to participate on an expert panel that will be held at an upcoming professional conference is such a great privilege and opportunity, thus, you should first express your gratitude for the honor and accept the offer covering your expenses.

Having your expenses covered, would make you channel all your time and energy into preparing, researching and organized for the event.

4 0
3 years ago
Corporate managers who supervise, coach, and guide lower-level employees and serve as their organizational sponsors are called
Vsevolod [243]

Answer:

networkers

Explanation:

Corporate managers who supervise, coach, and guide lower-level employees and serve as their organizational sponsors are called: networkers.

8 0
2 years ago
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
allochka39001 [22]

Answer:

e. Debit Petty Cash $50       Credit Cash  $ 50

Explanation:

The entry on October 01 is to reflect the increase in Petty Cash from $ 250 to $ 300. i.e the incremental effect is only $ 50. This is because for the regular replenishment that was done on September 30, the following entry would have been recorded:

Petty Cash - Debit   $ 232

Cash          - Credit   $ 232

The entry for recording the petty cash expenses would be as follows;

Office Supplies expense         debit    $ 73

Merchandise Inventory           debit     $ 137

Miscellaneous expenses        debit      $ 22

Petty Cash                               credit     $ 232

7 0
3 years ago
Marc and Michelle are married and earned salaries this year of $71,600 and $14,850, respectively. In addition to their salaries,
kompoz [17]

Answer and Explanation:

Adjusted gross income abbreviated AGI is the tax payers gross income minus deductions used in arriving at taxable income(AGI less allowable deductions)

Please find attached calculations for gross income and AGI for the couple

8 0
3 years ago
Other questions:
  • What is an outstanding check?
    11·1 answer
  • Which of the following would be considered a career in science?
    7·2 answers
  • Vertical integration strategies offer good potential
    12·1 answer
  • While reading difficult content, you should always start with
    11·2 answers
  • Assessment of a potential supplier’s financial situation:
    11·1 answer
  • What is the most important teaching point for a client after surgery when the client had epidural anesthesia?
    7·2 answers
  • Concord Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at
    9·1 answer
  • Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its bluebe
    15·1 answer
  • When we assume that hard workers are all honest or that slow workers are not very bright, this is considered projection.
    9·1 answer
  • JeMarcus is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!