Find who live in high sales tax areas

Reference no: EM13189902

It has been found that people who live in high sales tax areas are much more likely to purchase over the internet where they are usually exempt from sales tax from firms located in another state. The NGA has proposed a uniform tax of 5% on all internet sales. It has been estimated that this would reduce the total internet sales by 23%. Alternatively, if each state imposed its own taxes which average 6.33%, internet sales would decrease by 30%. Use an indifference-curve/budget line diagram to illustrate and explain these results. Put internet sales on one axis and all other sales on the other axis.

Reference no: EM13189902

Questions Cloud

Describe what is the underground economy : Explain the difference between fixed-production technology and variable-production technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology Should they d..

Neighbor connectivity analysis. : Propose a technique for detecting gaps of length ranging between 1 and L pixels in line segments of gradient image. Assume that the background is constant, that all lines have been coded with the same intensity level, and that the lines are 1 pixel t..

Renewed eruption in caldera can produce resurgent dome : Individual volcanoes erupt fairly regularly, and if the recurrence interval is known, their eruptions can be accurately predicted. Renewed eruption in a caldera can produce a resurgent dome.

What happens to the interest rate and investment : Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.

Find who live in high sales tax areas : It has been found that people who live in high sales tax areas are much more likely to purchase over the internet where they are usually exempt from sales tax from firms located in another state. The NGA has proposed a uniform tax of 5% on all int..

Warning sign of imminent eruption : What is the term for an unconsolidated accumulation of any size of pyroclastic grains? Which of the following events is a warning sign of imminent eruption?

Effectiveness of stms strategy : Evaluate the effectiveness of STM's strategy of combining as many existing initiatives as possible in order to simplify their approach to TQM.

Stratovolcano recently erupted : This stratovolcano recently erupted in the United States. Although it warned of its impending eruption, it still killed people, partly because it first blew sideways and produced a monstrous landslide. The explosion sent tons of ash skyward and blast..

What happens to equilibrium y if ig changes to 10 : ASSUME THAT THE CONSUMPTION SCHEDULE FOR A PRIVATE OPEN ECONOMY IS SUCH THAT CONSUMPTION C = 50 + 0.8Y. ASSUME FURTHER THAT PLANNED INVESTMENT Ig AND NET EXPROTS Xn ARE INDEPENDENT OF THE LEVEL OF REAL GDP AND CONSTANT AT Ig = 30 AND Xn = 10.

User Account

All Pages