Figure 11.11 shows that a tax on clothing can reduce the price of food. Suppose that after
Question:
In your answer, assume that the tax revenue is returned in equal lump-sum transfers to all citizens.
Transcribed Image Text:
FIGURE 11.11 Multimarket Analysis of Incidence S' = MC + T в S S' E, P, P E D Q Q, Clothing per Year Food per Year A tax on output in one market can affect prices in other markets. Here, the tax- induced increase in the price of clothing causes inputs to flow into the food industry. This increases the supply of food and decreases its market price. Price %24 Price
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
The additional tax on clothing will decrease the supply of clothing and cause re...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Public Finance A Contemporary Application of Theory to Policy
ISBN: 978-1285173955
11th edition
Authors: David N Hyman
Question Posted:
Students also viewed these Corporate Finance questions
-
In the text we argued that a tax on landlords would not get passed along to the renters. What would happen if instead the tax was imposed on renters? (a) To answer this question, consider the group...
-
The claim is often made that a tax on a specific good is simply passed on to consumers. Under what conditions of demand and supply elasticities does this occur? Under what conditions is little of the...
-
The price of food increased during the past year. a. Explain why the law of demand applies to food just as it does to all other goods and services. b. Explain how the substitution effect influences...
-
A fair die is tossed until all the numbers have been seen at least once. Let N be the number of tosses this requires. Find E(N). [Hint: Let N; be the number of tosses until i different numbers have...
-
An industrial psychologist working for a large corporation designs a study to evaluate the effect of background music on the typing efficiency of secretaries. The psychologist selects a random sample...
-
The standard enthalpy of combustion of ethyl acetate (CH 3 COOC 2 H 5 ) is 2231 kJmol 1 at 298K and its standard molar entropy is 259.4 JK 1 mol 1 . Calculate the standard Gibbs energy of formation...
-
The velocity profile for turbulent flow in circular pipes is often approximated by the \(1 / 7\) thpower law: \[\bar{v}_{z}=v_{\max }(1-r / R)^{1 / 7}\] Find an expression for the cross-sectionally...
-
Annual revenue for Corning Supplies grew by 5.5% in 2007; 1.1% in 2008; 3.5% in 2009; 1.1% in 2010; and 1.8% in 2011. What is the mean growth annual rate over this period?
-
6. Examine the following shell script and describe its function line-by-line: #!/bin/bash echo -e "This program copies a file to the /stuff directory. " echo -e "Which file would you like to copy?...
-
How many solutions does the equation ||2x 3 m| = m have if m > 0? - A 1 2 D 3. 4- B
-
The annual demand for liquor in a certain state is given by the following equation: QD = 500,000 20,000P Where P is the price per gallon and QD is quantity of gallons demanded per year. The supply...
-
The price elasticity of demand for wine is estimated to be 1 at all possible quantities. Currently, 200 million gallons of wine are sold per year, and the price averages $6 per bottle. Assuming that...
-
Indicate whether each of the following statements is true or false, and explain why. A. The Justice Department generally concerns itself with significant or flagrant offenses under the Sherman Act,...
-
What objectives does a company seek to achieve and why?
-
What do you understand by primary market? What role does it play in an economy?
-
What do you understand by secondary market? Why is the secondary market essential?
-
You have received a list of balances and balance day adjustments from Dr R Smart (figure 11.41) and have been requested to prepare an 8-column worksheet and then use it to prepare an income statement...
-
What role do financial markets play in an economy? What is likely to happen to an economy that does not have an efficient financial market?
-
Find the value(s) of the variable. In Exercises 24-26, B and D are points of tangency. Co 24 16
-
A horizontal annulus with inside and outside diameters of 8 and 10 cm, respectively, contains liquid water. The inside and outside surfaces are maintained at 40 and 20oC, respectively. Calculate the...
-
What are the major types of income excluded from gross income? Why are certain items excluded from AGI, even though they qualify as income under the Haig-Simons definition?
-
What is the consequence of a highly responsive supply of labor hours for the excess burden of an income tax on wages? Show that a low elasticity implies that workers bear most of the income tax on...
-
Why must the substitution effect be separated from the income effect of tax-induced wage reductions to measure the excess burden of a comprehensive tax on labor income? Draw a graph that shows how...
-
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,300. The machine's useful life is estimated at 10 years, or 403,000 units of...
-
14. (3 points) Write a program that ask the user for 1. their first name and 2. their last name, Enter first name: Matt Enter last name: Priem Hello Matt Priem! and then outputs a greeting similar to...
-
Given a sorted array 2, 5, 8, 12, 16, 18, 22, 25, 29, 32 and the following interpolation search algorithm. Show the steps of the algorithm when 25 is searched. Also, when 26 is searched. array a,...
Study smarter with the SolutionInn App