Sin taxes a burden on consumers With sin taxes constantly rising consumers must wonder who is paying for the tax that is levied on the good or service. For some goods and services the tax is shared but tax on other goods and services‚ depending on the elasticity of the demand or supply‚ are sometimes completely paid by the consumer or producer. Sin taxes are a tax levied on products or services that is supposed to help the government correct the damages that the product or service causes.
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The article ¡§Pain at checkout as WA bananas go east¡¨ by Regina Titelius and Jennifer Eliot states that in the wake of cyclone Larry¡¦s unforgiving wrath on Queensland‚ banana prices have soared throughout the nation over the last month and are expected to rise even more following WA¡¦s wholesaler Mercer Mooney declared that Carnarvon bananas would be shipped east. Following cyclone Larry¡¦s destruction on Queensland‚ it has wiped out about 80 per cent of Australia¡¦s bananas destroying fruit worth
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Name: ________________________ Class: ___________________ Date: __________ ID: B Microeconomics Mid-term Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Figure 6-3 ____ ____ ____ ____ ____ 1. Refer to Figure 6-3. In panel (b)‚ with the price floor in effect‚ there will be a. a shortage of wheat. b. equilibrium in the market. c. a surplus of wheat. d. an excess demand for wheat. 2. The positive relationship between
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one‚ the demand for the good is said to be price elastic. It means that a proportionate change in price causes a more than proportionate change in quantity demanded‚ ceteris paribus. When PED is less than one‚ demand for the good is said to be price inelastic. This means that a proportionate change in price of the good causes a less than proportionate change in quantity demanded‚ ceteris paribus. Different products have different price elastic ties due to a number of factors. Firstly the availability
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What happens to momentum when one marble collides with other marbles? Hypothesis: If a marble collides with increasingly more marbles‚ then the momentum will be transferred more slowly to the final marble‚ because momentum is conserved through an inelastic collision‚ but a longer distance will have be traveled by the kinetic energy. Independent Variable: The number of marbles. Dependent Variable: The momentum of the first marble and final marble. Control Variables: The same size/weight marbles‚ the
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will discuss and address the utilities derived‚ the change that demand for the product or service of market and equilibrium prices‚ what has occurred to change the demand and supply of the oil‚ and is demand for oil product or service price elastic or inelastic. According to Glantz (2012)‚ the utilities derived from the article have to do with the way the community consumes the oil that is being used. When the gas prices are up there is a necessity for the oil or fuel and it will most likely cause
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Quiz 10 A pure monopolist is selling 6 units at a price of $12. If the marginal revenue of the seventh unit is $5‚ then: [pic] |[pic] |firm’s demand curve is perfectly elastic. | |[pic] |price of the seventh unit is $10. | |[pic] |price of the seventh unit is greater than $12.
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Determine if the demand for the following products is price elastic or price inelastic‚ and explain your answer. In your explanation‚ be sure to include how the necessity of a good and the availability of substitutes affect the price elasticity of demand in each of these specific cases: • Gasoline as a commodity This is inelastic because gasoline cannot be substituted with anything. • Gasoline sold at a local gasoline station Elastic because there is more gas stations to compete with. There
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complementary goods C. the price elasticity of demand for both AAA and BBB is inelastic D. AAA and BBB are substitute goods 4. If Ahmad’s salary went up from RM1‚200 to RM1‚500‚ while his monthly demand for cigarettes increased from 10 packets to 12 packets‚ then Ahmad’s income elasticity of demand for cigarettes is considered to be ___________________________________________. A. elastic B. inelastic C. unit elastic D. indeterminate 5. Cross elasticity of demand measures the
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formula: Ei = percentage change in quantity demanded percentage change in income Task B: 1. If the elasticity of demand coefficient is zero‚ then the demand is perfectly inelastic. Consumers demand had no response to a change in the price of a good. When consumers respond to a change in price‚ the demand is elastic if the elasticity of demand coefficient is greater than one‚ or when the change in price of a good causes a
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