Explain why would elasticity of demand be important

Assignment Help Business Economics
Reference no: EM1345768

Q. "You are chairperson of a state tax commission responsible for establishing a program to raise new revenue through excise taxes. Explain why would elasticity of demand be important to you in determining the products on which the taxes should be levied?".

Q. Suppose the consumption function is
C = $500 billion + 0.9Y

and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with

a) A $50 billion increase in go vernment purchases?

b) A $50 billion tax cut?

c) A $50 billion increase in income transfers?

Reference no: EM1345768

Questions Cloud

Determine company current stock price : Ziggs Company will pay a $3.85 per share dividend next year. The corporation pledges to increase its dividend by 4.75 percent per year, indefinitely.
Show the effects of the fed contractionary monetary policy : Show the effects of the Fed's contractionary monetary policy by shifting one or both of the curves.
Purchasing power parity- inflation-exchange rate : Assume that the inflation rate in united States is 4 percent and in Canada it is 5 percent. What would you expect is happening to the exchange rate between United States and Canadian dollars?
What is the maximum frequency for the coin : Light is incident on a slit 0.750 mm wide. On a screen 2.00 m away, the distance from the central maximum to the first minimum is 1.35 mm. compute the wavelength of the light.
Explain why would elasticity of demand be important : Explain why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
Managing currency risk-general gadget coconut scrapers : General Gadget Corp. (GGC) is U.S.-based multinational firm which makes electrical coconut scrapers. Assume that GGC begins manufacturing its products in Trinidad using local (Trinidadian) inputs and labor. How does this affect its exchange rate r..
Explaining how networks can be safe from hacking : Explain/propose a new/possible idea on how these networks can be kept safe from hacking.
Discuss advantages and disadvantages of corporate form : Why does a corporation select to form as a company? What are the steps required to become a corporation? Discuss the advantages and disadvantages of the corporate form of doing business?
Nominal interest rates-inflation and exchange rates : How much would you expect to receive for a nominal interest rate in Spain if funds can be invested in the U. S. at a rate of 7 % when inflation is expected to be 2.5 % in the U. S. and 7 % in Spain?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Production function exhibits constant

Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale.

  Organ procurement system

The overall effectiveness of the organ procurement system in the United States. What are its strengths and weaknesses.

  Changes to campaign finance laws passed

Elucidate why haven't the changes to campaign finance laws passed in 2002 been effective in stopping the flow of soft money

  Non-minorities in the labor market

Describe the changes in the model parameter(s) and resulting changes if any in the hiring decisions of the three types of firms.

  Keynes impact

Assessing the development of the discipline from today's perspective, how would Keynes's impact compare with that of your candidate.

  Clarifying resource demand

Clarifying resource demand as well as differs from those determinant product demand.

  Demonstrating a production possibilities frontier

Illustrate scarcity, choice also prospect cost with the aid of a diagram demonstrating a production possibilities frontier

  Delineate which marketplace participants benefited

Delineate which marketplace participants you believe benefited from the final court decision also whose interests were harmed.

  Role of differentiation in the market

Elucidate the role of differentiation in the market for pizza. Then apply the feedback critique to the role of differentiation in the industry.

  An expression describing total income from tickets plus

Write down an expression describing total income from tickets plus popcorn plus other concessions. Forecast total incomes for regular also special Tuesday-night pricing.

  Budget surplus to reduce the existing debt

Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt.

  Economic benefits in a current economy

Converse alternatives to GDP as a measure of economic benefits in a current economy.

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