Business
Business, 09.10.2019 23:10, laneycasey5375

Astudent consumes root beer and a composite good whose price is $1. currently, the government im- poses an excise tax of $0.50 per six-pack of root beer. the student now purchases 20 six-packs of root beer per month. (think of the excise tax as increasing the price of root beer by $0.50 per six-pack over what the price would be without the tax.) the government is considering elimi- nating the excise tax on root beer and, instead, requiring consumers to pay $10.00 per month as a lump-sum tax (i. e., the student pays a tax of $10.00 per month, regardless of how much root beer is consumed). if the new proposal is adopted, how will the student’s consumption pattern (in particular, the amount of root beer consumed) and welfare be affected? (assume that the student’s marginal rate of substitution of root beer for other goods is diminishing.)

answer
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 11:30, pettygirl13
Florence invested in a factory requiring. federally-mandated reductions in carbon emissions. how will this impact florence as the factory's owner? a. her factory will be worth less once the upgrades are complete. b. her factory will likely be bought by the epa. c. florence will have to invest a large amount of capital to update the factory for little financial gain. d. florence will have to invest a large amount of capital to update the factory for a large financial gain.
Answers: 1
image
Business, 22.06.2019 12:20, laskew37221
Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. jaguar, for instance, launched its x-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. by marketing to people who desire a luxurious lifestyle, jaguar is using:
Answers: 3
image
Business, 22.06.2019 17:30, Miccyy
What is one counter argument to the premise that the wealth gap is a serious problem which needs to be addressed?
Answers: 1
image
Business, 23.06.2019 02:00, rohan13
Opportunity cost is calculated by which of the following? a. adding the value of all lost opportunities. b. subtracting all costs from the total benefit. c. calculating the cost of time, energy, and sacrifice. d. finding the value of the best option that is not chosen.
Answers: 1
Do you know the correct answer?
Astudent consumes root beer and a composite good whose price is $1. currently, the government im- po...

Questions in other subjects:

Konu
Mathematics, 09.02.2022 09:30