Demand and supply graph of pizza

Assignment Help HR Management

Reference no: EM13720798

Suppose the current equilibrium price of cheese pizza is $10, and 10 million pizzas are sold per month. After the federal government imposes a $0.50 per pizza tax, the equilibrium price of pizzas rises to $10.40, and the equilibrium quantity falls to 9 million.

Illustrate the situation with a demand and supply graph. Be sure your graph shows the equilibrium price before and after the tax, the equilibrium quantity before and after the tax, and the areas representing consumer surplus after the tax, producer surplus after the tax, tax revenue collected by the government, and deadweight loss.

How is the tax burden divided between buyers and sellers?

Reference no: EM13720798

Questions Cloud

Templeton extended care facilities : Templeton Extended Care Facilities, Inc. is considering the acquisition of a chain of cemeteries for $400 million. Since the primary asset of this business is real estate, Templeton's management has determined that they will be able to borrow the maj..

What would the argument predict going forward : Professor Jeremy Siegel of Wharton argued in 1998 that the stock market was not irrationally overvalued at the time, but rather merely that investors had (rationally) realized that the stock market is not particularly risky, so that required returns ..

Increased inventory less increased accounts payables : Company ABC needs to install a new manufacturing machine. The base price is $100,000. Installation costs are $10,000. After 3 years the machine will be sold for $75,000. Applicable depreciation rates are 33 percent, 45 percent, 15 percent, and 7 perc..

Find mean and standard deviations for average weight : Calculate the Range Column in Excel (Largest-Smallest) and find mean and standard deviations for Average Weight, Smallest, Largest, and Range columns.

Demand and supply graph of pizza : Suppose the current equilibrium price of cheese pizza is $10, and 10 million pizzas are sold per month. After the federal government imposes a $0.50 per pizza tax, the equilibrium price of pizzas rises to $10.40, and the equilibrium quantity falls..

After-tax cost of debt : The XYZ Inc.'s currently outstanding bonds have a 10 percent yield to maturity and an 8 percent coupon. It can issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40 percent, what is XYZ's after-tax cost..

Folole muliaga case study : Using the Folole Muliaga case study provided in Bridgeman (2010) and Eweje and Wu (2010), evaluate alternative actions and consequences to Mercury Energy. In your paper, be certain to specifically address the following:

Market and book ratio : A company has an EPS of $4.20, a book value per share of $38.64, and a market/book ratio of 1.3 xs. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.

What is the one-year continuously compounded zero rates : The six-month zero rate is 8% per annum with semi-annual compounding. The price of a one-year bond that provides a coupon of 6% per annum semi annually is 95. What is the one-year continuously compounded zero rates?

User Account

All Pages