How much revenue does the tax raise for the government

Assignment Help Business Economics
Reference no: EM132559159

In an effort to reduce alcohol consumption, the government of economy XYZ is considering $1 tax on each gallon of liquor sold (the tax is levied on producers). Suppose that the demand curve is QD = 500,000- 20000P (where QD is the number of gallons of liquor demanded and P is the price per gallon), and the supply curve for liquor is Qs = 30000P (where Qs is the number of gallons supplied).

How much revenue does the tax raise for the government?

How much of the revenue comes from consumers, and how much from producers?

Suppose that the demand for liquor is more elastic for younger drinkers than for older drinkers. Will the liquor tax be more, less, or equally effective at reducing liquor consumption among young drinkers? Explain

Reference no: EM132559159

Questions Cloud

Determine the bid price that clearwater industries would : Determine the bid price that Clearwater Industries would provide to its customer, Acme Weighing Systems using the Cost-plus pricing approach.
How will optimum quantity and tr change : If after a month he starts incurring a maintainace cost of Rs. 200 per tree, then how will optimum quantity and TR change?
What is the net cash from financing activities : Purchase of Seattle, Inc., bonds (face value $205,000) 363,000. What is the net cash from financing activities in Bothell's 2019 statement of cash flows
Prepare production budget for abc company for july to dec : As a Management Accountant, what would be your advice to the company management during the COVID-19 pandemic when making budget decisions?
How much revenue does the tax raise for the government : In an effort to reduce alcohol consumption, the government of economy XYZ is considering $1 tax on each gallon of liquor sold (the tax is levied on producers)
International gadgets-team building and collaboration : International Gadgets is a company with offices throughout the United States and in Europe.
Find how much should be willing to pay for the stock : Calculate the present value today of dividends for years 1 to 5. How much should be willing to pay for the stock if feel that the 7 percent growth.
Short-run and long-run : As an economy develops and becomes more integrated into the world economy how do its costs of production change and how well can they be managed
Estimate the equilibrium price and quantity : a. Estimate the equilibrium price and quantity b. What would happen to the market at the new prices of 5 cents?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the safest bank in the world

What is the safest bank in the world? Who owns it too? Is it in America.

  Determine the present worth of the cash flows

If ABC's interest rate is 8%, determine the present worth of the cash flows.

  What single sum of money at the end of the third year

What single sum of money at the end of the third year is equivalent to a payment series of $10,000 the first year, $9,000 the second year... down to 6,000 the 5th year? Assume the money has a time value of 10%/year compounded annually.

  What is the amount of six equal annual deposits

What is the amount of six equal annual deposits that can provide ten annual withdrawals, where a first withdrawal of $8987 is made at the end of year seven and subsequent withdrawals increase at $1777 over the previous year, at an interest rate of 5%..

  Achieve the sales goal

During a recession the manager for Best Buys wants to increase sales volumes of both flat screen TVs and DVD players to help that department reach its sales goal; How could the manager achieve the sales goals for these two products and how would that..

  Analogous to shifts in the demand curve

Changes in price dictate movements along demand curves. When a decrease in demand or the quality demanded occurs it’s a safe bet that its correlated to a price increase, which in turn leads to a resultant surplus of that particular commodity in the m..

  Explain the fact of how it occurs

Define the international Fisher Effect and explain the fact of how it occurs. Is there any deviation from it?

  What is the expected value cost of aml

What is the Expected Value Cost of AML to individuals living in the County? (Show calculations)

  Determine consumption-employment-output-leisure

For the closed-economy, one-period model, suppose that U (C, l) = min (C, β × l), and F (K, N) = αK + δN, where β > 0, α > 0, and δ > 0. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain y..

  What is the probability that the boat dock will be idle

What is the probability that the boat dock will be idle? If required, round your answer to two decimal places.

  Recorded on the banks balance sheet

Dave Macy decides to sell his gold jewelry and deposits the cash at his local bank. How would this be recorded on the bank’s balance sheet?

  What is the probability that 2 or more

What is the probability that 2 or more would have an IQ greater than 140. Represent your solution as an expression of ?=p(IQ>140) and give ?.

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