Senator is considering tax, Macroeconomics

Assignment Help:

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by Qd = 300 - 4P and the market supply (including taxes) is QS = 2P - 120 (both in millions), where P is the monthly price of the telecommunication services.

The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy of QS = 2.3P - 120. How much money per unit would a typical consumer save each month as a result of the proposed legislation?


Related Discussions:- Senator is considering tax

The crowding out effect, what goals and policies are being discused to addr...

what goals and policies are being discused to address the crowding out effect?

Fiscal, what is the supply side

what is the supply side

Elucidate the factors of global demand and supply, Many economists and mark...

Many economists and market analysts are avid followers of the BALTIC DRY INDEX (BDI) as a forward looking mechanism that may shed a bit of light on the evolution of global economic

Rate of inflation, 2. Given the following information: Consumers are very o...

2. Given the following information: Consumers are very optimistic about the future. The price of oil has just doubled. The money supply is growing at a 6% rate. The government has

What is real gross domestic product, What is Real GDP To be able to ma...

What is Real GDP To be able to make reasonable comparisons of GDP over time, we must adjust for inflation. For instance, if prices are doubled over 1 year then GDP would doubl

Firm''s total revenues, How much will your firm's total revenues (revenues ...

How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?

Determine what would be lowest bid of sfi , Snake Farm Inc. (SFI) has been ...

Snake Farm Inc. (SFI) has been offered to submit a competitive bid for building 31 and 22, 18, and 11offshore pits per year for Athletic Inc. over the next four years.  If the bid

Provide a convincing response designed, More than ever, groups and teams ar...

More than ever, groups and teams are responsible for executing tasks in the workplace. Take a position on the following statement: All organizations should use the group structure

Equilibrium price and quantity, Use the following general linear demand rel...

Use the following general linear demand relation: Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the suppl

Explain about labor market in as-ad model, Q. Explain about Labor Market  ...

Q. Explain about Labor Market  in AS-AD model? In AS-AD model, economy will always be on the response curve - the thick line in chart below.  Figure: The labor in the

Write Your Message!

Captcha
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