Effects of a tax on producers of corn syrup, Taxation

Assignment Help:

In response to rising obesity, a number of pundits have proposed taxing corn syrup, an ingredient in most soda pop. Let's consider the market for corn syrup assuming this tax takes effect. Suppose the government collects a 50 cent tax from producers for each gallon sold.

a. Draw a graph which shows the effects of a tax on producers of corn syrup (to receive full credit you must place the tax on sellers and not use a tax wedge). Identify the price buyers pay, the price sellers receive, the quantity sold in the market, the tax revenue generated for the government, consumer surplus, producer surplus and the deadweight loss.

b. How does the tax on corn syrup affect the price and quantity bought and sold of soda pop? Explain (a graph may be helpful).


Related Discussions:- Effects of a tax on producers of corn syrup

Calculate nominal interest rate, You have been offered a unique investment ...

You have been offered a unique investment opportunity today; you will receive $500 one year from now. If you invest $10,000 today, you will receive $500 one year from now, $1500 tw

Describe what is the incidence of tax, Tax incidence can be separated into-...

Tax incidence can be separated into- 1. Formal incidence: the party liable to the tax 2. Informal incidence: party, who really pays the tax The tax incidence is decided by t

Tax corporation return, King Corporation, an accrual method taxpayer, repor...

King Corporation, an accrual method taxpayer, reports the following results for 2014: Regular taxable income before regular tax NOL deduction $800,000 Minus: Regular tax NOL deduc

Tax return.., need help with tax return assignment

need help with tax return assignment

Accounting for income taxes, Gustav Ltd commenced operations on 1 July 2011...

Gustav Ltd commenced operations on 1 July 2011 and presents its first statement of comprehensive income for the year ending 30 June 2012 and first statement of financial position a

need help for doing my homwork, I have 95 qustions and I need to get ur he...

I have 95 qustions and I need to get ur help for some of these qustions that I can not do it. the homwork will be avalble just for 2 hours on this Sanday

Us tax questions, zainab ali -  i uploaded the questions that i want u...

zainab ali -  i uploaded the questions that i want u to solve it . please let me know how much is it and then i will download the details ..  also please i want U.S. tutoring

What is the total tax, Melissa Tang has recently sold her stake in Global M...

Melissa Tang has recently sold her stake in Global Manufacturing Ltd., a firm that she founded in 1990, for $15 million. She is now trying to decide how best to invest the proceeds

Explain the incidence of this tax, Question 1: Government imposes a spe...

Question 1: Government imposes a specific tax on hotel room.  Use demand and supply analysis to explain the incidence of this tax on the tourist, hotelier, Government as well a

Write Your Message!

Captcha
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