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The market demand and supply functions for toothpaste are: Qd=12-0.04P and Qs=3.8P+4 Calculate:
a. The equilibrium quantity and price.
b. The demand and supply point elasticity in equilibrium.
c. The slopes of the demand and supply equations are different. By making reference to the slopes, explain why the demand elasticity at the equilibrium price and quantity is significantly larger/smaller than the supply elasticity.
d. Suppose the toothpaste market is taxed $0.25 per unit. What price is now charge to consumers?
e. What percentage of the burden of the tax is paid for by consumers?
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Calculate your total tax liability under the 2013 federal income tax structure, assuming your income is $75,000. Assume you are single and using the personal exemption of $3,900 and the standard deduction of $6,100. Calculate your effectiv..
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