Excise taxes are sometimes referred to as sin taxes when applied to products such as alcohol and
Question:
Excise taxes are sometimes referred to as “sin taxes” when applied to products such as alcohol and cigarettes. Using the concepts of elasticity of demand and supply, explain how we could determine whether it is the consumer or the producer that is bearing the burden of such a tax.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
The right diagram for analysing this question is Figure 49 in the textbook For both alcohol and ciga...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Why are stock index futures and options sometimes referred to as derivative products? Why do some investors believe derivative products make the markets more volatile?
-
Why does the government place excise taxes on goods such as cigarettes and alcohol? Is it because these pro- ducts are sinful? (These taxes are often called sin taxes.) Do you believe that excise...
-
Explain why special items are sometimes referred to as one-shot revenues. Why are they not reported with other revenues? Review 10 governments General Fund financial statements from the Internet or...
-
Assume that the average talk time on an Apple iPhone is 20 hours and that this time follows the exponential probability distribution. What is the probability that a randomly selected iPhone will...
-
If vs in the circuit of Fig. 17.71 is the same as function f2(t) in Fig. 17.56(b), determine the dc component and the first three nonzero harmonics of vo(t). 1 F
-
Table 18.5 shows the gross national product (GNP) in trillions of dollars for the years 1960-2012. Find the average yearly rate of change of the GNP for the requested years in Problems 19-26. Table...
-
True or False: The following annual cash flows in years 1 thru 7, respectively, have a single real positive-valued root: \(-\$ 100,+\$ 15,-\$ 25,+\$ 75,-\$ 10,+\$ 50\), \(+\$ 50\).
-
Birmingham Contractors uses a job order costing system. In May 2010, the company made a $3,300,000 bid to build a pedestrian overpass over the beach highway at Gulf Shores, Alabama. Birmingham...
-
2 Charlie's Crispy Chicken (CCC) operates a fast-food restaurant. When accounting for its first year of business, CCC created several accounts. Account Name Description Balance Accounts Payable...
-
On June 2, 2017, Betty Rice opened Betty's Art Studio in Toronto. The following transactions occurred in June: 2017 June .... 2 Betty Rice invested $12,000 in the art studio. ........... 3 Paid three...
-
What did Robert Lucas say about the comovements among economic variables?
-
Suppose you are advising an industry association on the predicted effects of a price change on quantity demanded and total expenditure on their product. The current price is $1.00 per unit, and...
-
Explain how the vapor pressure of a liquid changes with each of the following changes. (a) The surface area of the liquid decreases from 50 to 10 cm 2 when the liquid is poured into a container with...
-
What is the purpose of payables cut-off testing?
-
What is the purpose of vouching recorded accounts receivable to supporting transactions?
-
Explain how the control risk for completeness is impacted by the control risk assessments for purchases and cash transactions.
-
Explain how accounts payable is affected by purchase and payment transactions
-
Explain how the assessment of the assertions for credit sales, cash receipts, and sales adjustments affects the assessment of the assertions over accounts receivable.
-
If a scuba diver descends too quickly into the sea, the internal pressure on each eardrum remains at atmospheric pressure, while the external pressure increases due to the increased water depth. At...
-
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...
-
Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand and supply curves for labour are given by Demand: w = 18 - 3LD Supply: w = 3 + 2LS Where w is the...
-
The following questions are about resource allocation in the presence of price ceilings and price floors. a. A binding price ceiling leads to excess demand. What are some methods, other than price,...
-
Consider the market for some product X that is represented in the demand-and-supply diagram. a. Suppose the government decides to impose a price floor at p1. Describe how this affects price,...
-
Assume that the real rate of interest is 1 . 7 3 percent and the anticipated percentage change in price levels over the life of the loan contract is 9 . 2 3 percent. What is the nominal interest rate...
-
Samsung has been producing the new Galaxy X250 smart phone throughout 2022 but doesn't plan to sell it until March 2023. How are these smartphones, which are sitting in a warehouse somewhere in...
-
Silver Water Motorworks produces small electric motors in lots of 200 with an average yield of 92%. Fifty per cent (50%) of the sub-standard output from the first run through, can be reworked. Direct...
Study smarter with the SolutionInn App