List the conditions that are consistent

Assignment Help Econometrics
Reference no: EM131346816

On July 1, 1965, the federal ad valorem taxes on many goods and services were eliminated. Comparing prices before and after this change, we can determine how much the price fell in response to the tax's elimination. When the tax was in place, the tax per unit on a good that sold for p was If the price fell by when the tax was eliminated, consumers must have been bearing the full incidence of the tax. Consequently, consumers got the full benefit of removing the tax from those goods. The entire amount of the tax cut was passed on to consumers for all commodities and services Brownlee and Perry (1967) studied for which the taxes were collected at the retail level (except motion picture admissions and club dues) and most commodities for which excise taxes were imposed at the manufacturer level, including face powder, sterling silverware, wristwatches, and handbags. List the conditions (in terms of the elasticities or shapes of supply or demand curves) that are consistent with 100% pass-through of the taxes. Use graphs to illustrate your answer.

Reference no: EM131346816

Questions Cloud

Describe the importance of project management : The four main elements of the project life cycle are defining, planning, executing and closing. Give an example of a task you performed on a project, either as a leader or team member, and identify what stage of the life cycle it was in and why. D..
Company issued new securities in the same proportion : Goodbye, Inc., recently issued new securities to finance a new TV show. The project cost $13.3 million, and the company paid $655,000 in flotation costs. If the company issued new securities in the same proportion as its target capital structure, wha..
Determine the temperature in the container : Determine The temperature in the container,- The mean free path between collisions and The collision frequency F.
Explain the penalties of noncompliance with the law : Joseph Ingle, an overseas sales manager, has been dealing with a serious issue that is affecting Axetem's foreign sales. Also, explain the penalties of noncompliance with this law.
List the conditions that are consistent : List the conditions (in terms of the elasticities or shapes of supply or demand curves) that are consistent with 100% pass-through of the taxes. Use graphs to illustrate your answer.
Determine the collision frequency and mean : Determine the collision frequency and mean free path for neon at 273 K and 0.113 MPa. The molecular mass of neon is 20.183 kg/kgmole.
Develop analysis of the techniques dr kallman has identified : Develop a three- to four-page analysis (excluding the title and reference pages), of the techniques Dr. Kallman has identified for managing risks.
Determine the number of oxygen molecules present : Determine The number of oxygen molecules present, The average molecular velocity, and The rms molecular velocity.
Return on investment and cost analysis : "Return on Investment (ROI) and Cost Analysis" Please respond to the following: Imagine it is your task to calculate ROI for a hypothetical training program. Based on the scenario, analyze the ROI of the training that was implemented, using the cost ..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the governments opportunity cost of capital

The state's fish and game department has a capital budget of $9million. What is the government's opportunity cost of capital if ithas the following projects to consider What does this indicateabout which projects should be done

  What is the composition of gdp by percentage

What is the composition of GDP by percentage?

  Estimate the cash flows involved in the project

How would the decision above be affected if the firm's bond rating was reduced and its cost of capital changed to 10 per cent?

  Analyze the sensitivity of the picture frame design

Analyze the sensitivity of the picture frame design of Fig. 18.11, and compare it to that of the Xducer and to Motorola's published statement that the picture frame achieves a 40% increase in span.

  How to specify the optimum number of piers

Two girder designs are under consideration for a bridge for a 1,200-foot crossing. The first is expected to result in a superstructure weight per foot of 22(S) + 800, where S is the span between piers. The second should result in superstructure we..

  Calculate effective surface area per plate

The following constructional information is available for a gasketed-plate heat exchanger

  What would be the minimum market share to reach the mes

Imagine a manufacturing industry that produces 100 million units of compact digital cameras annually in the US market. Suppose the minimum efficient scale (MES) for the production of digital cameras is 10 million units annually.

  Determine the smallest permissible dimension

A torque of 400 lb ft is applied to the square tube with constant 0.10-in. wall thickness. Determine the smallest permissible dimension a if the shear stress is limited to 6500 psi.

  Define the factor of production called capital

Define the factor of production called capital. Give three examples of capital, different from those in the chapter. Distinguish between the factor of production capital and financial capital.

  What are monoplists average total cost and average revenue

b)At the profit-maximizing output rate, what are the monoplist's average total cost and average revenue c) At the profit-maximizing output rate, what are the monopolist's total cost and total revenue d) What is the maximum profit

  Explain how the values for marginal physical product

explain how the values (how to calculate them) for Marginal Physical Product and Marginal Revenue Product First Column: Number of workers Second Column: Total output Third Column: Marginal Physical Product Fourth Column: Marginal Revenue Product

  Find what is the interest rate for buying versus leasing

A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.

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