Increase sales taxes to bring in required revenue

Reference no: EM13686039

Governor White wants to increase sales taxes to bring in required revenue to support state operations. He is looking at taxing various goods and services. Will the state tax revenue be greater if the state imposes a sales tax on goods where the price elasticity of demand = .9, or 1.5? Why?

Reference no: EM13686039

Questions Cloud

What is the simple money multiplier : Presume that the required reserve ratio is 8.0%. What is the simple money (deposit) multiplier? Round to two decimal places.

What will the total pressure become : The partial pressures of gas A and gas B, respectively, are 0.244 atm and 0.674 atm. If 0.120 mol of a third gas is added with no change in volume or temperature, what will the total pressure become?

Own price elasticity of market demand for retail gasoline : Presume the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.7 and a typical gasoline retailer enjoys sales of $1,450,000 yearly. What is the price elasticity of demand for a representative gasoline retaile..

There is an alternative procedure : There is an alternative procedure

Increase sales taxes to bring in required revenue : Governor White wants to increase sales taxes to bring in required revenue to support state operations. He is looking at taxing various goods and services. Will the state tax revenue be greater if the state imposes a sales tax on goods where the price..

Potassium sulfate and lead : Potassium sulfate and lead

Market structure would economist classify large : What market structure would an economist classify a large wheat farm business in? Also, given that structure, what business strategies can be employed to maximize the profit?

Calculate ka for hydrocyanic acid : Calculate Ka for hydrocyanic acid and its percent dissociation.

What are the economic impacts of wireless power : What are the economic impacts of wireless power? Is it going to be economic or more expensive? Please provide charts or some data for validation.

User Account

All Pages