need anser, Microeconomics

Consider what would happen if a taxes of 10000$ was imposed on imported automobiles on dealers.Using a demand and supply diagram, show its impact of price and quantity. Suppose the demand for automobiles is very elastic.Explain using diagram the impact of the tax, on buyers and automobiles dealers.Given that demand is elastic, do you think this taxation policy will help to reduce traffic on roads?Will it raise higher government revenue?Why would you think demand for automobiles is elastic?
Posted Date: 11/6/2012 3:33:52 PM | Location : Bangladesh







Related Discussions:- need anser, Assignment Help, Ask Question on need anser, Get Answer, Expert's Help, need anser Discussions

Write discussion on need anser
Your posts are moderated
Related Questions
Determine the value of the marginal product of labor. Equilibrium in the Labor Market Each firm will hire labor up to the point at that the value of the marginal product of

Define Disposable Incomeand dumping Disposable Income :  The amount of income left after as deductions as income tax, pension contributions and national insurance. More genera

Consumer Preferences Indifference curves represent all the combinations of market baskets which provide the same level of contentment to the person. Consumer Preferences

Risk Aversion and Income - Variability in potential payoffs increases risk premium. - Example: A job has a .5% probability of paying $40,000 (utility of 20) and a 5 p

The U.S. automobile industry, the soft-drink industry, the brewing industry, segments of the fast-food industry, and airplane manufacturers. Oligopoly will usually produce less tha

What is Hybridization? Atomic orbitals can be combined, in a process called hybridization in chemistry , to describe the bonding in polyatomic molecules. Descriptions of the b


Development: Economic development is the process through that a country's economy expands and improves in both qualitative and quantitative terms. Economic development requires co


how has the haberlers theory of opportunity cost an improvement over the classical theory of trade