What tax should it levy on each of the two given goods

Assignment Help Financial Management

Reference no: EM131200057

The demand for snorkels in Berhama is given by Q_S = 500 - 8P_S, and the supply of snorkels in Berhama is given by Q_S = 200 + 4P_S. The demand for kayaks is given by Q_k = 650 - 6P_k, and the supply of kayaks is given by Q_k = 50 - 1.5P_k. Both goods are currently untaxed, but the government of Berhama needs to raise $5,000 (to finance a new lighthouse) by taxing snorkels and kayaks.

What tax should it levy on each of the two goods?

Reference no: EM131200057

Questions Cloud

Improve the sensitivity of this mechanical tachometer : Write expressions for sensitivity and bandwidth for the device. Using the example, show that the two performance ratings, sensitivity and bandwidth, generally conflict. Discuss ways to improve the sensitivity of this mechanical tachometer.

What is the theoretical justification for the laffer curve : What is the theoretical justification for the Laffer curve?- should the United States raise or lower its tax rates in order to increase tax revenues? Explain.

Define clarifying and describe in detail all of its guidelin : Explain the methods for studying the effects of leader behavior and give an advantage and disadvantage of each. Define clarifying and describe in detail all of its guidelines.

Goals be determined by competitive marketing techniques : Traditionally, the healthcare industry did not incorporate marketing strategies into business practice. To be successful in today's market environment, health care providers must employ similar marketing techniques as traditional for-profit businesse..

What tax should it levy on each of the two given goods : The government of Berhama needs to raise $5,000 by taxing snorkels and kayaks.- What tax should it levy on each of the two goods?

Identify two medium to large-sized cities law enforcement : Identify two medium to large-sized cities' law enforcement agencies within the United States. Write a three to five page paper comparing two organizational design structures relating to the law enforcement organizations.

Preferred method to improve the capacity of any process : Which is the preferred method to improve the capacity of any process?

What is an anti-aliasing filter : Suggest a suitable cutoff frequency for an anti-aliasing filter to be used in this application.

Assumption of ceteris paribus : If we operate under the assumption of ceteris paribus, what is the best linear representation of the demand faced by the firm [please provide the equation for the demand in terms of Q = a+bP].

User Account

All Pages