The demand function =35000-5P and the supply function of a firm Ms. Sulekhs Ltd. is =20000+20P. What will be impact on the quantity demanded and price when government imposes specific sales tax ₹ 10.00 per unit and Lump Sum tax ₹ 2000.
Tap an option to check your answer.
Checking your account…
The demand function Q_d =35000-5P and the supply function of a firm Ms. Sulekhs Ltd. is Qₛ =20000+20P. What will be impact on the quantity demanded and price when government imposes specific sales tax ₹ 10.00 per unit and Lump Sum tax ₹ 2000. (A) 509 (B) 608 (C) 1200 (D) 609
Also written as: The demand function Q_d =35000-5P and the supply function of a firm Ms. Sulekhs Ltd. is Q_s =20000+20P. What will be impact on the quantity demanded and price when government imposes specific sales tax ₹ 10.00 per unit and Lump Sum tax ₹ 2000.
Taxation: incidence and efficiency has come up 79 times in 7 exams since 2009.
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.
Question from the JNU SSS 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.