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Upvote confirmed ,please attempt An ad valorem tax of 30% applies to Nike sneakers which have a market price (i.e. price including the tax) of

Upvote confirmed ,please attempt

An ad valorem tax of 30% applies to Nike sneakers which have a market price (i.e. price including the tax) of $80 per pair. What price (in dollars) should be used for a pair of sport shoes in an efficiency CBA under each of the following sets of circumstances? (You must also give an example for each of the 8 scenarios below to explain the why you chose that price) a. The tax is distortionary, and the commodity is a project output which replaces existing demand from alternative source; $ ___________________ b. The tax is distortionary, and the commodity is a project output which satisfies additional demand; $ ___________________ c. The tax is distortionary, and the commodity is a project input which is sourced from an alternative market use; $ ___________________ d. The tax is distortionary, and the commodity is a project input which is sourced from additional supply; $ ___________________ e. The tax is corrective, and the commodity is a project output which replaces existing demand from alternative source; $ ___________________ f. The tax is corrective, and the commodity is a project output which satisfies additional demand; $ ___________________ g. The tax is corrective, and the commodity is a project input which is sourced from an alternative market use; $ ___________________ h. The tax is corrective, and the commodity is a project input which is sourced from additional supply. $ ___________________

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