Every month price of the telecommunication services, Macroeconomics

Assignment Help:

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 300 - 4P and the market supply (including taxes) is QS = 2P - 120 (both in millions), where P is the monthly price of the telecommunication services.

The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 2.3P - 120. How much money per unit would a typical consumer save each month as a result of the proposed legislation?


Related Discussions:- Every month price of the telecommunication services

Employment and inflation , With the aid of a diagram explain the Philip''s ...

With the aid of a diagram explain the Philip''s curve

National income, # ???? .. difference between gdp at market price and nnp...

# ???? .. difference between gdp at market price and nnp at factor cost

No plans to purchase hot dogs in january, Currently you purchase 6 packages...

Currently you purchase 6 packages of hot dogs a month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase hot dogs i

The risk and term structure of interest rates, The Risk and Term Structure ...

The Risk and Term Structure of Interest Rates Expectations Theory and Bond Maturity Level Analysis Prepare calculations and a one to two page analysis, following the APA 6th edi

Millions of americans purchase, Each day millions of Americans purchase mil...

Each day millions of Americans purchase millions of goods and services. These goods and services are generally readily available, as long as you have the necessary money to purchas

Decay toothbrush and decay fighter toothbrush, The Stop decay company sells...

The Stop decay company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decay fighter, redu

Problems, Classify each of the following as employed, unemployed, or not in...

Classify each of the following as employed, unemployed, or not in the labor force. a. Beth is not working; she applied for a job at Wal-Mart last week and is awaiting the result

International trade, How can a country maintain equilibrium GDP with foreig...

How can a country maintain equilibrium GDP with foreign trade?

#title.Functions of money., #qDiscuss the functions of money Illustrate you...

#qDiscuss the functions of money Illustrate your answeruestion..

MONETARY POLICY, What are the instruments of monetary policies

What are the instruments of monetary policies

Write Your Message!

Captcha
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