Entertainment taxes specifically for korean pop acts

Assignment Help Business Economics
Reference no: EM133392569

Assume that the government intends to increase entertainment taxes specifically for Korean pop acts. They are so popular while Filipinos are eager to buy concert tickets regardless of cost, so government thinks we can earn a lot from this revenue measure. The revenue generated from increased taxes would support funding for independent Filipino films and cultural acts. Korean pop acts would serve as your supply, and it is relatively price elastic. Filipino consumption for Korean pop content is your demand, and currently, it is relatively price inelastic. Answer the following questions based on this problem.

Who bears the larger tax burden for this measure?

As soon as the measure stabilizes, the demand and supply for Kpop acts would both become relatively elastic. What then is the size of the deadweight loss?

Based on the problem, what factor determines the size of deadweight loss?

Reference no: EM133392569

Questions Cloud

Developed effective gene therapy for diabetes : You are considering acquiring a firm rumored to have developed an effective gene therapy for diabetes.
A theater near you : Are the trading relationships between the movie studios and the movie exhibitors stable? Who has invested in "specific assets"? What makes them specific?
New type of home security system : You are a researcher who has a client that markets a new type of home security system for people who rent their home.
Threshold model stops companies from evolving : Do you see other areas in business where the threshold model stops companies from evolving, getting stuck in their own norm
Entertainment taxes specifically for korean pop acts : Assume that the government intends to increase entertainment taxes specifically for Korean pop acts.
Why population growth and housing affordability crisis : Explain why population growth, and housing affordability crisis will have caused a shift in the demand curve
Exchange market-static aggregate demand-aggregate supply : Use foreign exchange market and static aggregate demand-aggregate supply diagrams to illustrate
The documentary introduces fundamental ideas of economics : What are some of the themes or ideas brought up in the documentary?
Understanding of supply and demand curves : Research and describe what methods and strategies the country(canada) is using to generate its economic growth in the areas of.

Reviews

Write a Review

Business Economics Questions & Answers

  Corner solution of one firm pricing at the monopoly price

Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C.  If both firms move simultaneously, what are their equilibrium strategies and what is the equilibrium outcome? Compare the efficiency ..

  By hiring a second barber at the same wage rate

Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage ..

  Decreases in tax rates for lower-income groups

How might decreases in tax rates for lower-income groups increase the multiplier? How might increases in the tax rates of higher-income groups lower the multipl

  Find the tax rate and after tax income

Mr.A makes $50,000 a year and pays $10,000 in taxes. Ms.B makes $30,000 a year and pays $6,000 in taxes. Find the tax rate and after tax income for each of them. Identify what type of tax this is. Consumption is $6 trillion, investment is $2 trilion ..

  What is the weighted average cost of capital

The cost of equity is 14.5 percent and the aftertax cost of debt is 4.8 percent. What is the weighted average cost of capital?

  What is the cost of equity

"Suppose you borrow $1000000 when financing a coffee shop which is valued at $1850000. What is the cost of equity?

  Consensus of economists and business analysts

The consensus of economists and business analysts is for faster economic growth in the U.K. relative to the U.S. Firms in the U.K. are also projecting excellent profits. What are the implications for the exchange rate of the dollar for the British po..

  We know that gdp has four components consumption

We know that GDP has four components: consumption (C), investment (I), government purchases (G) and net exports (NX). If we let Y stand for GDP

  What is the role of PROFIT in the American economy

What is Keynesian Economics and what role does the government play in the economy? What is the role of PROFIT in the American economy? What does "our children and grandchildren inherit the national debt?"

  Researchers have found hybrid of corn-technological break

Researchers have found a hybrid of corn that is cheaper to grow. This technological break through

  Evaluating a project with the cash flows

Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of 9 percent.

  Calculate the present value of each of future payments

What is the present value of receiving $200 one year from now when the prevailing rate of interest is 8 percent? What is the present value of $200 to be paid to you at the end of two years, if the market interest rate is 5 percent?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd