Effects of a tax on producers of corn syrup, Taxation

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).

Posted Date: 3/25/2013 6:06:20 AM | Location : United States







Related Discussions:- Effects of a tax on producers of corn syrup, Assignment Help, Ask Question on Effects of a tax on producers of corn syrup, Get Answer, Expert's Help, Effects of a tax on producers of corn syrup Discussions

Write discussion on Effects of a tax on producers of corn syrup
Your posts are moderated
Related Questions

i want some problems with solutions on karnataka value added tax 2003

Background information Jim set up a limited company; Show the Way Limited (The Company), along with his father in 1983. The company is incorporated in Scotland and has been reg

Lambda Ventures, an unincorporated business, has a class 10 UCC balance on January 1, 2010 of $453,000.During 2010, it acquires additional Class 10 assets at a cost of $63,200.Also

WriteRight, Inc. has engaged us to prepare its 2012 Federal (but not state) income tax return. Your responsibilities are as follows: 1. Prepare WriteRight, Inc.'s 2012 Federal


Q. Explain the effects of taxation on the equilibrium of a firm? Suppose a tax is imposed on the producers of a commodity, the tax is on each unit for they produce. Naturally,

kindly please help me in getting the valuation methods under other methods for the assessment year 2012-13.

Hello, I am  zainab ali, i want help in Tax assignment.. In 2012 Joe, age 15, earned $2900 from acting and had $12,200 of interest income and $14,000 of taxable qualifie

How does this variation affect people and corporation?