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- Both a payroll tax and an excise tax on alcoholraise revenue and, respectively, shrink the marketsfor labor and alcohol. Although both have somefunctions in common, governments may havedifferent goals when levying them. What goalsdo you think motivate a payroll tax? What goalsmotivate an alcohol tax?(a) Show the market for housing in equilibrium on a diagram, where demand is less elastic than supply, andlabel the respective consumer and producer surpluses. Discuss whether this market is Pareto efficient. (b) Assume that the State Government imposes a per-unit tax on the sellers of houses. A new diagram,shows the imposition of this tax on the market for housing. Does the imposition of this tax cause a Paretoimprovement to the market, explain? (c) Is the tax imposed in part (b) effective for the collection of Government revenue? Justify your answer withreference to your diagram in part (b).Suppose an ad valorem tax is imposed in which the Consumer Burden of the tax is less than the Producer Burden of the tax. Which of the following is most relevant ? O perfectly inelastic O perfectly unit elastic O perfectly elastic O inelastic O unit elastic O elastic O can not be determined
- If the government imposes a tax on a product: O the MC will rise causing the level of output to rise. the MC will rise causing the level of output to fall. O the MC will rise causing the level of output to rise. O None of these answers are correct. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is the (a) burden, tax revenue? Then replace the % tax with $40 per unit tax. What is the tax burden and tax revenue? 200 I0 120 00 PO GO 20 Qtr 140 IGO I O % tax: burden on consumer burden on producer tax revenue Unit tax: burden on con burden on producer sumer tax revenue Which tax as a consumer do you prefer?Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If the government taxes this good, O buyers and sellers will each share 50 percent of the burden, regardless of the elasticities of the demand and supply curves. sellers will bear a larger share of the tax burden. the distribution of the burden will depend upon whether the buyers or the sellers are required to send the tax to the government. buyers will bear a larger share of the tax burden.
- Time left 0:36:11 When the price elasticity of demand is low and the price elasticity of supply is high, the burden of a tax falls primarily on Select one: Oa. both buyers and sellers of the product equally. O b. the tax payers. O . buyers of the product O d. sellers of the productO When a per unit tax is imposed on the consumer of the product, identify how the consumer nd producer surplus changes, identify the deadweight loss and the amount of the total tax that vill be received by the government. Price PTax D PE F E P1 I H. K Dmi DMTAX QE QE2 Quantity aibicid eifigoh Consumer Surplus before tax = Producer Surplus before tax Consumer Surplus after tax = a Producer Surplus after tax = dig Total Tax = Deadweight Loss = %3D a,bicifih 7 b.) If the world price level of a product was above the domestic U.S. equilibrium price, diagram if the U.S. would import or export the product? Identify how the consumer surplus and producerThe federal government currently levies a 15.3 percent payroll tax (7.65 percent on both the employer and employee) on the wages of all workers. If the demand for labor is relatively elastic when compared to the inelastic supply of labor, the burden of this tax will fall primarily on employees. fall primarily on employers. be divided equally between employees and employers. O Its impossible to tell from this information.
- The demand for pastries slopes downward and the supply of pastries slopes upward. Suppose that the demanders of pastries are less elastic than the suppliers of pastries. If the government levies a tax on the suppliers of pastries then... а. The tax burden is entirely borne by demanders. O b. Most of the tax burden is on demanders but suppliers do bear some of the tax burden. c. The tax burden is entirely born by suppliers. O d. Most of the tax burden is on suppliers but demanders do bear some of the tax burden.(a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay? Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? Please do not use chat gpt and answer the best way it can be.a. The market demand and supply functions for VCR movie rentals are:QD=10-0.04P and QS=3.8P+4.Suppose that VCR movie rentals are taxed at $0.25 per unit. Calculate:i. the equilibrium quantity and price, point elasticity of demand in equilibrium andproducer surplus without tax.ii. the revenues generated by the tax, the loss in producer surplus and percentageof the burden of the tax falls on producers?b. Determine the "rule-of-thumb" price when the monopolist has a marginal cost of $25and the price elasticity of demand of -3.0.