If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic
Question:
If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand.” What is the rationale for this statement?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
The government can maximize tax re...View the full answer
Answered By
Sumit kumar
I am an experienced online essay writer with a thorough understanding of any curriculum.and subject expert at Chegg for mathematics, CS subjects..
4.90+
5+ Reviews
13+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
What account is credited when a company receives donated assets? What is the rationale for this choice?
-
Suppose the current tax system is such that the government takes some fixed percentage t of any labor income that you make. A. Some in Congress have proposed the following alternative type of tax...
-
This problem is set in a fanciful location, but it deals with a very practical issue that concerns residents of this earth. The question is, In a Democracy, when can we expect that a majority of...
-
Find the inverse of each of the given matrices by the method of Example 1 of this section. Data from Example 1 Find the inverse of the matrix First, we interchange the elements on the principal...
-
The sales volume y (in thousands of dollars) is related to advertising expenditures x (in thousands of dollars) according to Y = 200x / x + 10 (a) Is this function discontinuous at any points? (b)...
-
What is a cost hierarchy?
-
What must be included in a motion for summary judgment?
-
New employees at Sun Microsystems begin their orientation sessions after being hired with a computer game. It is part of an attempt to integrate new people, improve the image of the company, get...
-
October November December Budgeted S&A Expenses Salary Expense 10,000 10,500 11,000 Sales Commissions 5% of Sales 5,000 5,500 5,300 Insurance Expense 2,000 2,000 2,000 Rent 2,400 2,400 2,400...
-
Richard and Christine McCarthy have a 19-year-old son (born 10/2/99; Social Security number 555-55-1212), Jack, who is a full-time student at the University of Key West. Years ago, the McCarthys...
-
The quantity demanded of good X rises from 130 to 145 units as income rises from $2,000 to $2,500 a month. What is the income elasticity of demand?
-
Assume the demand for product A is perfectly inelastic. Further, assume that the buyers of product A get the funds to pay for it by stealing. (a) If the supply of A decreases, what happens to its...
-
In Exercises find the one-sided limit (if it exists). Tim (12 + 24)
-
This week, you will conduct an equity-impact assessment of Robotic Process Automations for. The goal of this assignment is to provide a framework for removing barriers that disadvantaged people may...
-
Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be...
-
INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office...
-
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $...
-
Bondo is issuing a new 8.0-year bond at a face value of $1,000 with a coupon rate of 6.3%. Coupons are semi-annual. What should the market price of these bonds be if the yield to maturity is 11.0%?
-
Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Jeremy is single with two withholding allowances. He receives an annual...
-
A company produces earbuds. The revenue from the sale of x units of these earbuds is R = 8x. The cost to produce x units of earbuds is C = 3x + 1500. In what interval will the company at least break...
-
Keynesians believe that there is an indirect effect between the money market and the product market. 1. State the Keynesian transmission mechanism. 2. Graphically show the effect of an increase in...
-
The Keynesian mechanism may get blocked. 1. Describe the problem of interest-insensitive investment. 2. Describe the problem of a liquidity trap.
-
Monetarists believe that there is a direct effect between the money market and the product market. 1. State the monetarist transmission mechanism. 2. Graphically show how monetarists believe an...
-
You have a $ 9 0 , 0 0 0 ten - stock portfolio with a beta of 1 . 2 5 . If you add $ 1 5 , 0 0 0 worth of Stock A ( beta = 1 . 3 8 ) to this portfolio, the resulting portfolio would have a beta of:...
-
On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000....
-
Appliance maker forecast consulting: You are hired to recommend a forecasting solution to a small-scale home appliance maker. The three managers namely the shop floor, marketing, and finance make an...
Study smarter with the SolutionInn App