Which good should she tax? explain briefly, you can use

Reference no: EM133442161

Question: A province needs to raise money, and the finance minister has a choice of imposing a lump sum sales tax of the same amount on one of two previously untaxed goods, good A and good B. Good A and B currently trade at the same price and quantity in their respective markets. a. Assume both the demand and supply of good A are more price elastic than demand and supply for good B. If the finance minister wants to maximize tax revenue, which good should she tax? If the finance minister wants to minimize deadweight loss, which good should she tax? Explain briefly, you can use a graph to explain. b. Assume demand for good A and good B is identical in terms of price elasticity, but supply for good A is more price inelastic than for good B. If the finance minister wishes to minimize tax burden on producers, which good should she tax? If the finance minister wants to maximize tax revenue, which good should she tax? Explain briefly, you can use a graph to explain. c. Assume supply for good A and good B is identical in terms of price elasticity, but demand for good A

Reference no: EM133442161

Questions Cloud

Identify on the graph the new input combination : sketch on the same graph the output that could be produced if the initial cost levels were to be maintained. c. Identify on the graph the new input combination

Whats one factor that explains the disparity between nyc : From this unit's chapter, what's one factor that explains the disparity between NYC teacher pay and the Yankees payroll

Assumptions used to construct indifference curves : What is the relation between the assumption that "more is preferred to less" and the assumptions used to construct indifference curves?

How the mouse trap demonstration disproves that theory : What is Intelligent Design? Explain why Intelligent Design proponents believe the bacterial flagellum supports their theory

Which good should she tax? explain briefly, you can use : If the finance minister wishes to minimize tax burden on producers, which good should she tax? If the finance minister wants to maximize tax revenue

Define what you believe a professional ethos to be : define what you believe a professional ethos to be and why-what experiences have led you to such a conclusion-and reflect on the attributes of a document

Do you believe unilever sponsors the shakti program to help : Do you believe Unilever sponsors the Shakti program to help women, to boost its own profits, or both? Explain your answer. If Unilever has mixed motives

Explain by reasoning and without reference to the experience : Explain by reasoning and without reference to the experience, why Hume thinks our idea of causation cannot be justified by Relations of Ideas.

What aspects of heroism can be found in the art and music : What aspects of heroism can be found in the art and music of the nineteenth century? Furthermore, compare Nietzsche's and Dostoevsky's criticism of the Romantic

User Account

All Pages