What percentage of the economic burden of the tax

Assignment Help Business Economics
Reference no: EM132023769

The price elasticity of demand for bobble heads is -2; the price elasticity of supply is 3. How much will the price of bobble heads change with a unit tax of $1? What percentage of the economic burden of the tax is borne by producers or consumers, respectively?

Reference no: EM132023769

Questions Cloud

New entry and decreased demand elasticity : Suppose that a new entry has decreased your demand elasticity from -5 to -6 (made demand more elastic) and that your price, before the new entry, was $20.
What is the cost of goods sold on the sale : On April 1st, 2013, the company purchased ten T-shirts for $7 each and sells 7 for $10 each. What is the cost of goods sold on the sale
Larger burden of the tax : Which type of traveler will bear the larger burden of the tax? Briefly explain your reasoning.
The opportunity to begin early construction of your website : This assignment provides you the opportunity to begin early construction of your website by building a foundation.
What percentage of the economic burden of the tax : What percentage of the economic burden of the tax is borne by producers or consumers, respectively?
What is the gross profit margin on this television : Typically, the company purchases a television for $1,000 and sells it for $1,250. What is the gross profit margin on this television
Growth rates between developed and undeveloped countries : The past 500 years have seen divergence in GDP and growth rates between developed and undeveloped countries.
Define internal controls and describe its key components : Explain the importance of internal control and provide examples of internal controls that an employer has in place. Define Internal Controls
New entry and decreased demand elasticity : You should adjust your price to ______sue to the new entry and decreased demand elasticity.

Reviews

Write a Review

Business Economics Questions & Answers

  Disadvantages of litigation as dispute resolution process

During the Christmas season, the Osceola School Superintendent orders each of the high schools within the school district to prominently display the nativity scene. Discuss at least two advantages and disadvantages of litigation as a dispute resoluti..

  Advocate the prevention of delinquency in youth

There are many programs currently in use today that advocate the prevention of delinquency in youth. In a 1-2 page paper identify at least two such prevention programs and describe the strategy each uses to further the cause of preventing these crimi..

  Calculate investment in operating capital

You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $62 million, had a tax rate of 30 percent, and its depreci..

  Suppose the irish economy is at full employment

Suppose the Irish economy is at full employment. Suppose in a few months, the exchange rate of the Irish national currency, the punt, will decline, giving the Irish relatively less purchasing power in foreign markets. What will happen to the price le..

  Theorem in terms of efficiency and distributional equity

The Coase Theorem suggests that, under some conditions, private bargaining will resolve the problem of negative externalities. Describe the set of conditions that must be in place for this to be true (at least three). What are the implications of thi..

  Little difference in quality of color film produced by firm

In the 1990s five firms supplied amateur color film in the United States: Kodak, Fuji, Konica, Agfa, and 3M. From a technical viewpoint, there was little difference in the quality of color film produced by these firms, yet Kodak’s market share was 67..

  What are the four main categories of resources

1. What are the four main categories of resources? Explain each of them. 2. (a) Explain what happens in the simple circular flow diagram?

  Compare the economies of india and china today

Chasing the dragon! Compare the economies of India and China today. What are their GDP per capita and their economic growth rates?

  Currency to the banking system

If the required reserve ratio is 8 percent, a new deposit of $10,000 in currency to the banking system, assuming banks all remain "loaned up", will result in an increase in money supply of $__________________. Show how you have found your answer.

  What is the present worth of the motor

A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. what is the present worth..

  Charged by the security and exchange commission

In 2006 the CEO of Bear Sterns, James Caynes, received a compensation package of $34 million. The following year Bear Sterns cost $2.7 billion to the taxpayers. Angelo Mozilo and two other top executives were charged by the Security and Exchange Comm..

  Manage wine cellar with fixed storage space

Suppose you manage a wine cellar with fixed storage space and you have to choose when to sell each bottle of wine. The value of each bottle V(t) is increasing over time at a decreasing rate: V' (t) > 0 and V'' (t)

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