The demand relationship for the good

Assignment Help Business Economics

Reference no: EM131002583

"The demand relationship for the good is P = 25 - 3Q. The supply relationship for the good is P = 5 + Q. Who bears the economic incidence of a tax if there is a $1 per unit tax on the buyer of this good? Who bears the statutory incidence? Who bears the statutory and economic incidence if there is a $1 per unit tax on the seller of this good? In determining tax incidence burden, please calculate the tax incidences for both the seller and buyer and draw graph."

I have P=10.75, Q=4.75 for a tax on the buyer. I have P=9.75, Q=4.75 for tax on the seller. I'm not sure what to do next or how to graph this.

Reference no: EM131002583

Questions Cloud

Private market for the provision of health services : Canada has a private market for the provision of health services, and until about 1970, spent the same % of GDP as the US on healthcare. Since that time, however, the rate of healthcare inflation in Canada is far lower than in the US. Does this mean ..

Develop a strategy on improving your personal life : Complete a personal mission statement and internal analysis for yourself. Many of the principles of successful business can be used in your own personal life. This personal mission statement assignment uses the concepts of several units to help you w..

Soybean prices are going to rise : Eric wants to buy September soybean futures because he believes that soybean prices are going to rise. He enters an order to buy one contract at $8.7725/bushel. The brokerage firm is going to charge Eric $35 commission to trade the contract. Assume i..

Each group member should deliberate the situation : In class, each group will meet for 10 to 15 minutes in different areas of the classroom. During that meeting, group members will take turns sharing their suggestions for the purpose of arriving at a single group treatment.

The demand relationship for the good : "The demand relationship for the good is P = 25 - 3Q. The supply relationship for the good is P = 5 + Q. Who bears the economic incidence of a tax if there is a $1 per unit tax on the buyer of this good? Who bears the statutory incidence? Who bears t..

Demand for mexican pesos is downsloping and supply of pesos : Explain why the U.S. demand for Mexican pesos is downsloping and the supply of pesos to Americans is upsloping. Assuming a system of flexible exchange rates between Mexico and the United States, indicate whether each of the following would cause the ..

Performance management analysis : Assessment: Your assessment of the company's PM approach is to be determined in relation to the PM practices and Coaching Practices presented in our texts and class discussions

True proportion of college students : In Example 14.7, the MLE of p, the true proportion of college students with a preference for closed-book exams, was estimated as 0.75 from the opinion survey result of 100 students. How precise is this estimate?

Documentation for the entire procedures for emergency : Initially, my assembled team would make up the documentation for the entire procedures for emergency use. It will include all party members involved all the way from the coordinator to the one that is going to be off the premises making contact with ..

User Account

All Pages