Computing tax incidences for seller and buyer

Reference no: EM1310605

Q1) Demand relationship for good is P = 25 - 3Q. Supply relationship for good is P = 5 + Q. Who bears economic incidence of tax if there is a $1 per unit tax on buyer of this good? Who bears statutory incidence? Compute deadweight loss from this $1 per unit tax and how much tax revenue government will get from tax. In determining tax incidence burden, compute tax incidences for both seller and buyer and sketch graph.

Reference no: EM1310605

Questions Cloud

Show whether each variance is favorable or unfavorable : Show whether each variance is favorable (F) or unfavorable (U) - Evaluate of Variable-overhead spending variance and the variable-overhead efficiency variance

Marketing role at each phase of economic development : Consider the role played by marketing at each phase of economic development.

Load the file into the parallel arrays : Load the file into the parallel arrays and show the list of customers` names and phone numbers in the alphabetical order.

Completion percentage for wip : What is the overall completion percentage for the WIP as to direct materials at the end of period?

Computing tax incidences for seller and buyer : Compute deadweight loss from this $1 per unit tax and how much tax revenue government will get from tax. In determining tax incidence burden, compute tax incidences for both seller and buyer and sketch graph.

Observation techniques in the aide : Which one of the given observation methods is the aide using?

How did you choose the best cost driver : Which variable do you believe is the best selection for a cost driver? How did you choose the best cost driver?

Connection with consolidation of assest : What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method.

Determine of firm''s dollar growth in dollars : What was the clinic's dollar growth in assets during 2007, and how was the growth financed and Determine of Firm's Dollar Growth in dollars

User Account

All Pages