Suppose the demand for burgers is given by = 286 - 20p and the supply is = 88+40p. If the government imposes a per unit tax of 1.05, what is the :
A. new equilibrium price and
B. tax revenue ?
Tap an option to check your answer.
JNU SIS 2020 Question 1: Taxation: incidence and efficiency
Answer and worked solution
Checking your account…
Plain-text version
Suppose the demand for burgers is given by Q_d = 286 - 20p and the supply is Qₛ = 88+40p. If the government imposes a per unit tax of 1.05, what is the: A. new equilibrium price and B. tax revenue? (A) A 2.6 B 247.7 (B) A 3.3 B 220 (C) A 4 B 216.3 (D) None of the above
Also written as: Suppose the demand for burgers is given by Q_d = 286 - 20p and the supply is Q_s = 88+40p. If the government imposes a per unit tax of 1.05, what is the: A. new equilibrium price and B. tax revenue?
Taxation: incidence and efficiency has come up 79 times in 7 exams since 2009.
What this question tests
This question is on Tax incidence, part of Taxation: incidence and efficiency in Public Economics.
Who actually bears a tax, whoever the law makes pay.
TestStop has 26 past-paper questions on this subtopic.
Similar questions from other papers
- Sequence the evolution of taxation principles in modern Economics. A. Ability to pay principle B. Benefit principle C. Optimal taxation theory D. Equity and efficiency…
- The relationship between tax revenue and tax rate is represented by.
- When product tax is imposed as a percentage of price it is referred as?
- Tax buoyancy is defined as.
- When public revenue increases by more than 1% for a 1% increase in GDP, it is known as:
Question from the JNU SIS 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.