Solved Questions

Question
Category: Economics
If the government places a $500 tax on luxury cars, will the price paid by consumers rise by more than $500, less than $500, or exactly $500? Explain.
Coursepivot December 3, 2022 02:05
Here is a tip: The less elastic market force has to bear a greater burden of tax. Explanation The burden of tax is determined by the respective elasticities of demand (View full solution)
Category: Economics
At Fenway Park, home of the Boston Red Sox, seating is limited to about 38,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue, the City of Boston levies a per ticket tax of $5 to be paid by the ticket buyer. Boston sports fans, a famously c...
Coursepivot December 3, 2022 02:05
Here is a tip: The size tax burden on the consumers or the producers depends on the elasticity of the demand and supply curves. Explanation Since the seating is limited (View full solution)
Category: Economics
A recent study found that the demand-and-supply schedules for Frisbees are as follows: Price per Frisbee Quantity Demanded Quantity Supplied $11 1 million Frisbees 15 million Frisbees 10 2 12 9 4 9 8 6 6 7 8 3 6 10 1 c. Irate college students march on Washington and demand a reduction in the price o...
Coursepivot December 3, 2022 02:03
Here is a tip: The price ceiling set above the equilibrium price is non-binding. Explanation Although a repeal of the price floor occurred, the price ceiling of $9 is still (View full solution)
Category: Economics
A senator wants to raise tax revenue and make workers better off. A staff member proposes raising the payroll tax paid by firms and using part of the extra revenue to reduce the payroll tax paid by workers. Would this accomplish the senator's goal? Explain.
Coursepivot December 3, 2022 02:03
Here is a tip: The tax burden depends on the elasticity of the demand and supply curve. Explanation Increasing the payrolls tax paid by employers and decreasing the payroll tax (View full solution)
Category: Economics
A recent study found that the demand-and-supply schedules for Frisbees are as follows: Price per Frisbee Quantity Demanded Quantity Supplied $11 1 million Frisbees 15 million Frisbees 10 2 12 9 4 9 8 6 6 7 8 3 6 10 1 b. Frisbee manufacturers persuade the government that Frisbee production improves s...
Coursepivot December 3, 2022 02:02
Here is a tip: Price floor refers to the legal limit upto which prices could fall. Explanation Due to the binding price floor of $2 above the equilibrium price of (View full solution)