The tax is to be paid by the producers of soda
Course:- Business Economics
Reference No.:- EM13999280

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

The government imposes a $1.10 excise tax on the sale of every 2 liter bottle of soda. The tax is to be paid by the producers of soda. The figure below shows the annual market for 2 liter bottles of soda before and after the tax is imposed.

a. Before the tax is imposed, the equilibrium price is $_______ per bottle and the equilibrium quantity is _______ billion bottles.

b. After the excise tax is imposed, consumers pay a price of $_______ per bottle.

c. After the excise tax is imposed, the price (amount) producers keep after the tax is paid is $______ per bottle.

d. After the tax is imposed, the equilibrium quantity is ______ billion bottles.


e. The government is able to collect $_______ billion of tax revenue from the tax.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Explain what is meant by the principal agent problem, and relate it to shirking. What are the different pay incentive plans that correct for shirking on the job? How does prof
An interesting example of strategic behavior comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). The article is included in the Required
Consider the market for land in downtown Florence, a vibrant urban area with hundreds of years of rich history, as compared to the market for land in rural Tuscany, the surrou
Give a detailed account of the various factors which determine whether an individual (or group) will migrate from one place to another. Briefly explain with the help on an exa
How are the BRIC economies alike? How are they different? Describe the process of Chinese reforms from their beginning in 1978 up until China’s accession to the WTO. What were
Suppose that the position of a nation's long-run aggregate supply curve has not changed, but its long-run equilibrium price level has increased. Which of the following facto
Perfect competition and economic efficiency. The market demand curve for widgets is P = 30 – Q while the market supply curve is P = Q. What is the equilibrium price and quanti
Select an organization that both U.S. and international presences. Write a 1,050- to 1,400-word paper in which you answer address the following: What does the president and co