This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In Florida, sunscreen and sunglasses are vital items. If the tax on sellers of these items is ... (Read 22 times)

Evvie72

  • Hero Member
  • *****
  • Posts: 519
on: Jun 29, 2018
In Florida, sunscreen and sunglasses are vital items.
 
  If the tax on sellers of these items is doubled from 5.5 percent to 11 percent, who will pay most of the tax increase: the buyer or the seller? Will the tax increase halve the quantity of sunscreen and sunglasses bought?

Question 2

Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing the portion of consumer surplus transferred to producers as a result of the price floor?
 
  A) A + B B) B C) A D) B + C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tuate

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

Because sunscreen and sunglasses are necessities, the demand for them is inelastic. So, most of a tax imposed on them will be paid by the buyer. Even though the tax doubles, the quantity purchased is not halved because the demand is inelastic.

Answer to Question 2

B


Evvie72

  • Member
  • Posts: 519
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Florida Panther Florida Panther
Factors affecting vital signs of older adults Factors affecting vital signs of older adults
The heavily worn, and sometimes cutmarked, anterior teeth of Neadertals suggest that these teeth wer The heavily worn, and sometimes cutmarked, anterior teeth of Neadertals suggest that these teeth wer
The Warm Mineral Springs individuals from Florida may be among the earliest Paleo-Indian skeletal re The Warm Mineral Springs individuals from Florida may be among the earliest Paleo-Indian skeletal re
If you want to show differences between items at the same time, a bar graph is more effective than a If you want to show differences between items at the same time, a bar graph is more effective than a
Ethics in social research are of vital concern to sociologists. As discussed in the text, ... Ethics in social research are of vital concern to sociologists. As discussed in the text, ...
Video: Net filtration pressure and lymph formation, edema & blood velocity

For a complete list of videos, visit our video library