With an excise tax of $ 0.20 per six-pack, Kristine purchases three six- packs of Diet Coke
Question:
With an excise tax of $ 0.20 per six-pack, Kristine purchases three six- packs of Diet Coke per day. If the government eliminates the excise tax and, instead, requires Kristine to pay $ 0.60 per day as a lump-sum tax (the daily tax liability is $ 0.60, regardless of how much Diet Coke Kristine consumes), how will Kristine’s consumption pattern and welfare be affected?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (18 reviews)
In the figure below AZ is the budget line if there is no tax and AZ is the bud...View the full answer
Answered By
Mario Alvarez
I teach Statistics and Probability for students of my university ( Univerisity Centroamerican Jose Simeon Canas) in my free time and when students ask for me, I prepare and teach students that are in courses of Statistics and Probability. Also I teach students of the University Francisco Gavidia and Universidad of El Salvador that need help in some topics about Statistics, Probability, Math, Calculus. I love teaching Statistics and Probability! Why me?
** I have experience in Statistics and Probability topics for middle school, high school and university.
** I always want to share my knowledge with my students and have a great relationship with them.
** I have experience working with students online.
** I am very patient with my students and highly committed with them
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Microeconomics Theory and Applications
ISBN: 978-1118758878
12th edition
Authors: Edgar K. Browning, Mark A. Zupan
Question Posted:
Students also viewed these Economics questions
-
An excise tax of $t per unit is imposed by the government on each spoon sold. This will cause the price paid by demanders (Pd) to exceed the price received by suppliers (Ps) by the amount of the tax...
-
Suppose the government eliminates the income tax and replaces it with a consumption tax. With a consumption tax, individuals pay a tax on only the part of their income they spend rather than save....
-
Suppose that an excise tax of 20 apiece and a sales tax of 30 apiece are imposed simultaneously. Answer again all of the questions in Exercise. Suppose the demand curve for oranges is given by the...
-
Suppose the money supply is $250 million dollars and the demand for money is given by Qm D = 400 - 40i, where Qm D is in millions of dollars. A. What is the equilibrium interest rate in this economy?...
-
Present a community relations program for an optical chain.
-
A piece of metal has a measured mass of 5.00 g in air, 3.00 g in water, and 3.24 g in benzene. Determine the mass density of the metal and of the benzene.
-
1 Why was the manager unable to win the workers understanding and cooperation? List the likely reasons in order of importance.
-
On January 1, 2012, Wilmes Floral supplies borrowed $2,413 from Bower Financial Services. Wilmes Floral Supplies gave Bower a $2,500 note with a maturity date of December 31, 2013. The note specified...
-
Question 4 (1 point) Saved A lessee should include the residual value in the minimum lease payments only if the residual value is guaranteed by the lessee. True False Question 5 (1 point) Saved Past...
-
After watching a movie about a young woman who quit a successful corporate career to start her own baby food company, Julia Day decided that she wanted to do the same. In the movie, the baby food...
-
Americans spend almost $ 700 billion per year on legalized gamblingroughly $ 200 billion more than they spend on groceries. Most Americans however also show evidence of risk aversion in other aspects...
-
Even though they enter graduate school at roughly the same age, law students typically own nicer cars than do Ph.D. students. Assuming that there is no difference across the two groups in terms of...
-
Why are providing liquidity and preserving principal the primary concerns in choosing short-term in-vestments? What guidelines should be included in a short- term investment policy?
-
Find f(x) if y = f(x) satisfies dy dx 60yx and the y-intercept of the curve y = f(x) is 6. f(x)
-
Data on the gasoline tax per gallon ( in cents ) as of a certain date for the 5 0 U . S . states and the District of Columbia are shown below. State Gasoline Tax per Gallon State Gasoline Tax per...
-
Write a function report card where the user can enter each of his grades, after which the program prints out a report card with GPA. Remember to ask the user how many classes he took (think - why...
-
VA= 18/ A c = ? 1. For the arrangement of cable and pulleys in the figure, the velocities and accelerations of two of the bodies involved are indicated. Determine the velocity and acceleration of the...
-
Suppose there are two electric charges in 2D planeR2; one is on y-axis and the other is on x-axis: 45km 0 p1:=0,p2:=30km.(1) Thechargesareq1=4.5Catp1andq2=3.0Catp2. (a) Determine the electric field...
-
Geneva Group reports net income of \($20,000\) for 2005. At the beginning of 2005, Geneva Group had \($100,000\) in assets. By the end of 2005, assets had grown to \($150,000.\) What is Geneva Groups...
-
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job C D E...
-
Dane Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year...
-
Ann's utility function is U = q1q2 / (q1 + q2). Solve for her optimal values of q1 and q2 as a function of p1, p2, and Y?
-
Wolf's utility function is U = aq10.5 + q2. For given prices and income, show how whether he has an interior or corner solution depends on a?
-
Given that Kip's utility function is U(qc, qm) = qc0.5 + qm0.5, what is his expenditure function?
-
Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of ZAIN estimates and...
-
What is the NPV of a project with an initial investment of $350,000 and annual cash inflows of $150,000 for the next 10 years? Cost of capital is 13% A $436,721.21 B $442,901.59 C $452,932.43 D...
-
Journal DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Joumalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of...
Study smarter with the SolutionInn App