What is the tax burden on producers and on consumers

Reference no: EM13199273

The demand for milk is described by Qd=85-10P and the supply of milk is described by Qs = 10P. (Quantities are in gallons)

a. Calculate the total price paid by consumers and the total price received and kept by producers after a tax of .30 per gallon is levied on consumers. What is the tax burden on producers and on consumers?

b. Calculate the total price paid by consumers and the total price received and kept by producers after an ad valorem tax of 3% (.03) is levied on
producers. What is the tax burden on producers and on consumers?

Reference no: EM13199273

Questions Cloud

Define developing extensive and similar illnesses : Suppose you live in a new suburban community. It offers all the amenities and benefits of a tight-knit small community, with the benefits of living close to the big city. Some years pass, and several children and adults in the community start deve..

Calculate the rate of return on equity : Calculate the rate of return on equity given the present capital structure (all equity). Briefly explain your method and result and Explain and critically discuss whether the prospect of financial distress and its associated costs affect the financi..

Why the relative tax burdens on consumers would be different : Explain how and why the relative tax burdens on consumers and producers would be different for the following taxes: A tax on all beverages; a tax on coffee; a tax on dark roast espresso.

Reason for providing foreign aid to a less developed country : Aside from humanitarian concerns,what is the one reason on nation is motivated to provivde foreign aid to a less developed country.

What is the tax burden on producers and on consumers : Calculate the total price paid by consumers and the total price received and kept by producers after a tax of .30 per gallon is levied on consumers. What is the tax burden on producers and on consumers

Define slippery slope relationship to gratuities : Explain the "Slippery Slope" and its relationship to gratuities in detail, using examples. Discuss each of the theories regarding public corruption that have offered the society-at-large hypothesis, the structural or affiliation hypothesis,

Type of financing available for quoted and unquoted business : Discuss the various types of financing available for quoted and unquoted businesses and what possible motives might companies have for going private?

Why is the increase in employment less than 5 thousand : Suppose that population increases led to an increase in labor supply (a rightward shift) of 5 thousand professors. What are the equilibrium wage and employment level in this market Why is the increase in employment less than 5 thousand

What is the least number of cups of lemonade : carolyn and kim are selling lemonade this summer. it cost .10 to make each cup of lemonade.they are going to sell each cup of lemonade for .25. what is the least number of cups of lemonade they need to collect $10 more than they spent?

User Account

All Pages