Macroeconomics
Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
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Chapter 1.1, Problem 2Q
To determine

Explain which an individual would sell if $15 is needed. 

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Suppose that initially a seller's "bottom line" asking price for a particular car is equal to $23,000.  However, a new tax is instituted that will tax the seller in the amount of 10% on the sale.  What is the seller's new "bottom line" after factoring in the new tax?
Bill Jackson had a total taxable income of $3000. Bill’s employer wants him to work another month during the summer, but Bill had planned to spend the month hiking. If an additional month’s work would increase Bill’s taxable income by $2000, how much more money would he have after paying the income tax?
What happens to a country's economy if there is a high tax for the company that earns more in that country?
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