Determining the excise tax

Assignment Help Macroeconomics
Reference no: EM131039976

In the market for fertilizer, the equilibrium price is $4 per pound, and the equilibrium quantity is 500. At that point, the price elasticity of demand is 2.3, and the price elasticity of supply is 3.4. If a $1 excise tax is imposed in this market, which of the following would you expect to see?

a. The price consumers pay for fertilizer will rise to $5.

b. The consumers will bear more of the burden of the tax than suppliers.

c. The government will make $500 in tax revenue.

d. All of the above

Reference no: EM131039976

Questions Cloud

Provide the definition of sexual harassment : Please provide the definition of sexual harassment. Also, please discuss how the term “In the Eye of the Beholder” relates to sexual harassment. Finally, please describe how the term ‘‘quid pro quo” relates to sexual harassment.
How it connects to allowing this bank to fail : In 2008-2009 the U.S. was in a deep recession and the tools of monetary policy had been used in an attempt to end the recession. Despite these efforts unemployment was above its natural rate and real GDP growth was below its potential rate.
Determining the excise tax : In the market for fertilizer, the equilibrium price is $4 per pound, and the equilibrium quantity is 500. At that point, the price elasticity of demand is 2.3, and the price elasticity of supply is 3.4. If a $1 excise tax is imposed in this market..
Transactional and transformational leaders : Distinguish between transactional and transformational leaders. Provide an example of each type of leader.
Comparative evaluation theory and self-concordance : Please discuss why F. Herzberg argued that ‘satisfiers’ do not provide motivation and why the ‘motivators’ are more related to the Business Case than are the ‘satisfiers.’ Also, please include ‘self-determination theory,’ ‘comparative evaluation theo..
Pairs of food and clothing : Jane has £500 a week to spend on food and clothing. The price of food is £10 and the price of clothing is £25. Which of the following pairs of food and clothing are in Jane's choice set?
Barriers to international trade-tariffs-non-tariff barriers : There are two main barriers to international trade, tariffs and non-tariff barriers. For this discussion choose a country and illustrate at least 3 ways these barriers work and under what circumstances they might be applied.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Describe the benefits and drawbacks of dynamic pricing

Describe the benefits and drawbacks of dynamic pricing for this particular company.

  What does the population below poverty line statistic for

What does the population below poverty line statistic for North Korea tell us about poverty in command economies? North Koreas' population below povery line= N/A

  Calculating money multiplier and nominal values of deposits

What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?

  Economic considerations of screening the blood supply

A recent report indicatesthat nearly 50 Americans contract HIV every year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of 9-different tests,

  Elucidate the roles played by total utility

Elucidate the roles played by total utility and marginal utility.

  The subsequent table gives total output or total product

The subsequent table gives total output or total product as a function of labor units used. Does the table indicate a situation of diminishing returns.

  Illustrate conditions is it possible to increase production

Illustrate what conditions is it possible to increase production of one good without decreasing production of another

  Find the equilibrium wage and employment before any tax

Suppose the supply for optometrists is given by LS= -6 + 0.6W, while the demand curve is given by LD= 50-W. Also, assume that the government imposes a payroll tax equal to $8 for each optometrist hired by a firm. a. Find the equilibrium wage and e..

  What is the point of the circular flow model

Trace through the circular flow model.  What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?

  Define utility function

the government has recent completed a study suggesting that fora health diet every consumer like chrissy a cash subsidy that would induce her to buy F=8. how large would the cash subsidy need to be? show her optimal basket iwth the cas subside on ..

  1 suppose annual salaries for sales associates from a

1. suppose annual salaries for sales associates from a particular store have a mean of 32500 and a

  Illustrate what would be a monetary policy prescription

Illustrate what would be a monetary policy prescription to reduce or eliminate deflation.

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