How is the tax burden divided between buyers and sellers

Reference no: EM13737451

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: EM13737451

Questions Cloud

Set of specific and general forces : Globalization is the set of specific and general forces that work together to integrate and connect economic, political and social systems across countries, cultures, or geographical regions.

Determine the appropriate mix of oil-base : Benjamin Moore wishes to use linear programming to determine the appropriate mix of oil-base and water-based paint to produce to maximize its total profit.

Management at a company : Using the Internet, research the selected company from its inception to current-day operations. Below are the companies identified for your Assignment. Please choose from the following companies for Assignment:

Major policy implementation approaches : Describe at least three major policy implementation approaches and the theorists associated with these approaches. Identify the most effective approach and explain why it is the most effective.

How is the tax burden divided between buyers and sellers : 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?

What is a project : What is a project. A project is a finite venture (with specific start and completion dates) to produce a unique product or service and/or achieve a specific goal or goals

How does film west bank story depict realities of west bank : How does film West Bank Story depict the realities of the West Bank Conflict today? Most of the controversy surrounding this film involves the over-simplification of the conflict itself.

Quality of organizational decision : The quality of organizational decision making ultimately depends on innovative responses to opportunities and threats. Explain the role that organizational learning and creativity play in helping managers to improve their decisions.

Actual case of an american publicly : Give an actual case of an American publicly traded firm that had a whistleblower on its case. What happened? Was there a utilitarian justification on both the micro and macro levels?

User Account

All Pages