21 Jul HOW MUCH OF EACH GOOD WILL HE DEMAND IN THIS CASE?
s now consider the case where government collects an income tax (is just tax on incom Show more Income tax Lets now consider the case where government collects an income tax (is just tax on income and does not depend consumed quantity) instead of quantity tax and raises the same amount of revenue. Government imposes an income tax which is the same amount when it collects quantity tax to Jack. (In other words Jacks income decreases in the amount of revenue collected with quantity tax in part (C)). G) How much of each good will he demand in this case? (The price of x1 is 3$ but his income decreased) H) In what type of tax would Jack be as better off? (Quantity tax or income tax) In other words compare utilities obtain by bundles with quantity tax or income tax [from part B and G]. I) Discuss what type of tax is better for consumers. (In both type of tax government collects the same amount of tax revenue so both types of tax is same for government) J) Draw Jacks best bundles in a graph. (Budget curves best bundles and maximum utilities for all of 3 situations in one graph). Show in the graph what type of tax is preferable. K) Calculate the consumer surplus in all of the 3 situations. (No tax quantity tax and income tax). Discuss what type of tax causes the higher loss of consumer surplus. L) Draw and drive Jacks demand curve for good 1 by using different best bundles and prices? (Quantity of x1 when px1 is 3$ and quantity of x1 when px1 is 4 $) M) Calculate own price elasticity of demand for good 1. N) Calculate income elasticity of demand for good 1. Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.