How much money would a typical consumer save each month

Assignment Help Econometrics

Reference no: EM13187323

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research AT&T spends $15 million on related paper work and compliance costs. Depending on the locale, telecom taxes can amount to as such as 25 percent of a consumers phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that deregulation of the telecom industry led to a highly competitive market. Your best estimates indicate that, based on the current tax rates, the monthly market demand for telecom services is given by Qd = 250 5P and the market supply, including taxes is Qs = 4P 110 (both in millions), where P is monthly price of telecom services. The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy Qs = 4.171P 110. How much money would a typical consumer save each month as a result of the proposed legislation

Reference no: EM13187323

Questions Cloud

What method will you utilize to remove the organic liquid : What method will you utilize to remove the organic liquid from the naphthalene? What is the name of the organic liquid being removedand why does this method work?

Explain the impact of the event on the market for gasoline : as a result of increased tension in the middle east, oil production is down by 1.21 million barrels per day-a 5 percent reduction in the world's supply of crude oil explain the likely impact of this event on the market for gasoline and the market ..

Words weathering and erosion are synonyms : The words weathering and erosion are synonyms; they can be used interchangeably. Graywacke and conglomerate are examples of well-sorted rocks; shales and fine-grained sandstone are examples of poorly sorted rocks.

State how many kilograms of water would be evaporated : what fraction of the day's energy does walking one hour represent? How many kilograms of water would have to be evaporated if this were the only means of heat loss?

How much money would a typical consumer save each month : You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research AT&T spends $15 million on related paper work and compliance costs. Depending on the locale, telecom taxes ca..

Build an entity relationship model for the above scenario : Build an entity relationship model for the above scenario. Show all attributes and indicate all of your key attributes in red.

What is the most logical past environment : What is the most logical past environment to have produced a deposit consisting of very little sand and mud, but instead lots of broken-up carbonate shells of marine organisms?

What is the equilibrium level of real gdp : Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4,000 3,700 100 150 -501) Using the table above, answer the following question. The numbers in the t..

Explain the combustion of oxalis acid in a bomb calorimeter : The combustion of oxalis acid in a bomb calorimeter yields 2816 J g^-1 at 25 degrees Celsius. Calculate a) Delta (c) U degrees and b) Delta (c) H degrees

User Account

All Pages