"What Happens To Consumer And Producer Surplus When The Sale Of A Good Is Taxed How Does The Change In Consumer And Producer Surplus Compare To The Tax Revenue" Essays and Research Papers

What Happens To Consumer And Producer Surplus When The Sale Of A Good Is Taxed How Does The Change In Consumer And Producer Surplus Compare To The Tax Revenue

burden on consumers With sin taxes constantly rising consumers must wonder who is paying for the tax that is levied on the good or service. For some goods and services the tax is shared but tax on other goods and services, depending on the elasticity of the demand or supply, are sometimes completely paid by the consumer or producer. Sin taxes are a tax levied on products or services that is supposed to help the government correct the damages that the product or service causes. Is the tax burden...

Consumer theory, Effect of taxes and subsidies on price, Elasticity 1281  Words | 5  Pages

Open Document

What Happens When There Is a Surplus of Imports Brought Into the Us

International Trade and Finance Speech What happens when there is a surplus of imports into the U S: A surplus of imports is good for consumers but bad for local business. We have to produce and manufacture in order to export. As our export trade shrinks, so does our workforce and economy. The surplus of imported cars for 2012 has exceeded the exportation by $152 billion. Also the shelf life of cars is 1 year. Every year at the end of the cycle the existing models are sold off at huge discounts...

Currency, Exchange rate, Export 1056  Words | 3  Pages

Open Document

Consumer Surplus

Consumer Surplus: The difference between the maximum price that consumers are willing to pay for a good and the market price that they actually pay for a good is referred to as the consumer surplus. The determination of consumer surplus is illustrated in Figure 1, which depicts the market demand curve for some good.  | | | | The market price is $5, and the equilibrium quantity demanded is 5 units of the good. The market demand curve reveals that consumers are willing to pay at least...

Colgate-Palmolive, Economic surplus, Fluoride therapy 606  Words | 3  Pages

Open Document

The Surplus

THE SURPLUS The surplus product is that part of the total output of an economy that is in excess of what is needed for reproducing and replenishing the labor, tools, materials and another inputs used or used up in production. In other words it is what remains after the necessary product has been taken out from the total product. A way of increasing the surplus is with a labor-saving technical change, which is a new technology that increases the total output produced with a given amount of labor...

Capitalism, Capitalist mode of production, Economic system 760  Words | 3  Pages

Open Document

Supply and Demand and Price

these side effects when deciding how much to consume and produce, the equilibrium in a market can be inefficient from the standpoint of society as a whole. 2. What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? Consumer surplus is money buyers would be willing to spend to buy a good above what they must pay at the current price; and producer surplus is money the producers are making at the...

Consumer price index, Economics, GDP deflator 1551  Words | 4  Pages

Open Document

Revenue Recognision

impact of a recently proposed excise tax on the welfare of her constituents. You explained to the Senator that one way of measuring the impact on her constituents is to determine how the tax change affects the level of consumer surplus enjoyed by the constituents. Based on your arguments, you are given the go-ahead to conduct a formal analysis, and obtain the following estimates of demand and supply: [pic] and [pic] . a) Graph the supply and demand curves. b) What are the equilibrium quantity and...

Demand curve, Economic equilibrium, Economic surplus 611  Words | 3  Pages

Open Document

Eco-111 Wa2

occurs when there is a single buyer and seller (or small group of them) with the ability to control market prices. This can lead to failure because it keeps prices and quantity away from the equilibrium of supply and demand. 2. What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? When a product is taxed both consumer and producer surplus drop. This change in surplus is gained in tax revenue...

Capital accumulation, Consumer price index, Economics 851  Words | 3  Pages

Open Document

Tata’s Nano: a Small Car with Large Consumer Surplus

figure 1 ), where sale of a new additional unit will generate proportionately larger change in total utility. Thereby the e surge in sales was an expectation from the company .Initial response from potential customers reaffirmed this point. Fig1 : Ref: http://2disbetterthan3d.wordpress.com/2008/02/10/law-ofdiminishing- marginal-utility-and-its-application-to-our-daily-consumption/ 1. 2. Supply and Demand: The law of demand holds true in case of Tata Nano, which states that consumers buy more of...

Consumer theory, Economics, Indifference curve 1327  Words | 4  Pages

Open Document

Sustainable Consumption: The Responsibility of Consumers and Producers

Sustainable Consumption: The Responsibility of Consumers and Producers The fact that the world is now facing massive population growth and overconsumption has made the threat of scarcity becomes never more real than before. The pressure to maintain sustainable consumption is echoing everywhere. This suggests the need for active involvement from the demand side of the market in safeguarding sustainability, through sustainable consumption. Attempting to align the understanding about sustainable consumption...

Consumer protection, Consumer theory, Overpopulation 2205  Words | 7  Pages

Open Document

Price Change

Price Change ECO/365 - PRINCIPLES OF MICROECONOMICS 6/16/2013 William Guido GUTHLAC ANYALEZU * Price Change * * In micro economist the supply of the apartments where in high demand while in macroeconomics the demand will be the demand of the demand of the apartments been needed. Our individual markets will set a house hold decision for the supply and demand of the apartment market will be for this type of necessities. The shifts in a supply curve will occur wherever the factors...

Aggregate demand, Aggregate supply, Demand curve 928  Words | 3  Pages

Open Document

Evaluate the view that, because price discrimination enables firms to make more profit, firms, but not consumers, benefit from price discrimination

firms, but not consumers, benefit from price discrimination Price discrimination is where a firm changes different consumers different prices for the same service. Consumer Surplus is the difference between what the consumer is willing to pay and the price they actually have to pay. In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they may have. Firms are able to do this by charging higher prices to those consumers with a more...

Elasticity, Marginal cost, Marketing 1216  Words | 4  Pages

Open Document

How the price mechanism determines the equilibrium price in the market and why governments may intervene

government intervention, we are able to focus on how the price mechanism determines the equilibrium price in the market. Markets can be effective at resolving the basic issues of what and how much to produce at a certain price level although left to operate on its own, the market can still create unsatisfactory outcomes. When markets do not produce the desired outcome, it is known as market failure and when this occurs, governments may intervene in the market. How the price mechanism brings about the equilibrium...

Economic equilibrium, Economics, Economics terminology 1706  Words | 6  Pages

Open Document

The Market for Chocolate Cookies Is Comprised of Two Types of Producers. There Are Profit Making Corporations and There Are Non-Profit Organisations (Npos) Which Employ Disabled People. the Market Is Competitive and the

buyers and sellers know what the current market price is and thus, it prevents exploitation of the consumers as producers would not be able to charge unfair prices. This is because each firm produces an insignificant fraction of the total market supply and therefore is unable to affect price, it is for this reason that each firm in perfect competition is known as a price taker. There are no barriers to entry or exit in a perfectly competitive industry and thus, producers can enter or exit the market...

Average cost, Costs, Economics 1563  Words | 5  Pages

Open Document


Question 1, part (a) What is elasticity? The term elasticity is defined as a way to measure how responsive doe’s quantity demanded or quantity demanded towards its determinants (Mankiw, 2008). In this world today, every government need revenue or income in order to increase the welfare of citizens and improve the country itself. One of the ways that government use in order to increase their revenue is by taxation. To do so, government needs to impose taxes on goods and services. If tax is imposed on a...

Elasticity, Externality, Microeconomics 1997  Words | 6  Pages

Open Document

Cigarette Tax Hike Sparks Panic Buying

Section 1 In the article ‘Cigarette tax hike sparks panic buying’, Hall (2010) discusses the effects of tax increase on cigarettes. The government has decided to raise the tax on cigarettes by 25%, costing $2.16 more on a pack of 30 cigarettes. This government intervention is an attempt to stop people from smoking and reduce the health bill caused by those who smoke. The increase in tax is expected to save $5 billion more of the people’s tax dollars and the government decided that it will be put...

Elasticity, Fiscal policy, Microeconomics 1352  Words | 4  Pages

Open Document

Value Added Tax

added tax abraham tuxley PROFESSOR PHYLIS ISLEY ECO 402 FALL 2012 STRAYER UNIVERISTY VALUE ADDED TAX Explain the concept of value-added tax (VAT). VAT is a tax in which it is applied to the difference between the business’s sales of goods and services and its purchases of goods and services. In other words, the businesses pay taxes on what they add to their goods and services...

Consumption tax, Income tax, Indirect tax 1574  Words | 5  Pages

Open Document

Identify and Explain the Main Economic Factors That Determine the Price of a Good or Service

that demand, supply, elasticity/inelasticity, product life cycle, competition, equilibrium / disequilibrium and Tax are the main economic factors to determine the price of a good or service. As an example, this essay also analyses the economic factors which have led to rises in the prices of such crops in the past 5 years. The main economic factors that determine the price of a good or service We have learnt from the lecture and text book that the market has the forces to determine the price...

Agriculture, Austrian School, Economic equilibrium 1777  Words | 6  Pages

Open Document

Indirect Tax

Indirect Tax Indirect taxes include value added tax, a range of excise duties on oil, tobacco and alcohol and fuel duty. VAT is levied on the sale of goods by registered businesses. Businesses add VAT to the price they charge when they provide goods and services to business customers - and non-business customers. There are different VAT rates, depending on the goods or services that are being provided. At the moment there are three rates: standard rate – 20%, reduced rate - 5 %, zero rate -...

Elasticity, Excise, Indirect tax 814  Words | 3  Pages

Open Document

Supply and Demand and Budget Line

marginal rate of substitution x and y are two goods P = price < = is less than {draw:frame} The graph above shown us the indifference curve budget line diagram which explaining the equation MRSXY < P X / PY. There are two ways to measure the consumer preferences or what the consumer wants. The first one is by trying to put a ‘value’ on the satisfaction a consumer obtains from consuming a ‘unit’ of a good. Consumers are assumed to be able measure utility in terms of...

Budget constraint, Consumer theory, Elasticity 1603  Words | 5  Pages

Open Document

Sin Tax Bill: Dashing Expectations

18 March 2013 Sin Tax Bill: Dashing Expectations How good does the decrease of the number of smokers in the Philippines sound? Moreover, wouldn’t an increase in the government’s health care revenue be pleasing to hear? The Sin Tax Bill, now signed into law, aims to promote health by discouraging vice whilst raising additional revenues for the government’s Universal Health Care Program. It aims to do so by increasing taxes in so-called sin products such as alcohol and cigarettes. The largest percent...

Cigarette, Electronic cigarette, Nicotine 1501  Words | 4  Pages

Open Document

consumer awarenesss

We use a lot many types of goods for a reason. These goods are both tangible (goods) and non-tangible (services). Together goods and services are known as commodities. The reason for their use is what can be called as satisfaction of wants. Wants are satisfied by using goods and services. The process of using various goods and services to satisfy a want is known as consumption. When we pay a price for good or a service and use it for to satisfy a want, we become consumers. With advertisement in...

Consumer, Consumer protection, Consumer theory 834  Words | 3  Pages

Open Document

Tax on Producers and Consumers

1.1- A tax on Producers a) i) Equilibrium Price and Quantity before tax: 100-10Q = 20 +10Q ∴ 20Q = 80 ∴ Q = 4 When Q = 4, P = 60 ∴ Equilibrium price equals $60 and equilibrium quantity is 4 million ii) Consumer Surplus = ½ x 4 x 40 = 80 Producer Surplus = ½ x 4 x 40 = 80 iii) An efficient market occurs when total surplus is maximized...

Consumer theory, Cost, Costs 2085  Words | 10  Pages

Open Document

1. a Government Is Proposing to Increase the Tax on Petrol. Examine the Relevance of Price Elasticity of Demand for This Proposal.

proposing to increase the tax on petrol. Examine the relevance of price elasticity of demand for this proposal. When considering increase the tax on petrol, there are a few things to look at. First of all, the price elasticity of demand is a measure of responsiveness of the quantity of a good or service demanded to change in its price. Petrol is an inelastic product. This is because petrol is a needed in a daily basis. An increase in price of petrol will cause a small change (decrease) in petrol....

Alfred Marshall, Consumer theory, Elasticity 812  Words | 4  Pages

Open Document

Gst: Government Service Tax

perceived that the introduction of the Goods and Services Tax (GST) can facilitate a significant improvement in the overall tax administration and enable revenue authorities to introduce modern procedures based on voluntary compliance. GST is a consumption tax charged on a wide range of domestic &amp; international products, goods and services. GST covers all types of goods &amp; services sold to Malaysian &amp; non-Malaysian residents also known as consumers except for common commodities such as...

Income tax, Indirect tax, Progressive tax 2080  Words | 6  Pages

Open Document

Whose Interests Should Be the Paramount Concern of Government Trade Policy – the Interests of Producers (the Business and the Employees) or of the Consumers?

Formulation From the Benefit of Producer and Consumer Yue Zhao School of Management, Southwestern University of Finance and Economics Wenjiang Distrcit, Chengdu 611130, China E-mail: zhaoyueyy@gmail.com Abstract The implementation of a trade policy will have different effects on the different interest groups. The benefits of producer and consumer are often opposite. In order to look out an appropriate trade policy, we should balance the benefits of producer and consumer when we formulate trade policy....

Agriculture, Economics, Economy 1798  Words | 6  Pages

Open Document

Chapter 4 Practice Questions

Names____________________ 1. Melissa buys an iPod for $ 120 and gets consumer surplus of $ 80. a. What is her willingness to pay? b. If she had bought the iPod on sale for $ 90, what would her consumer surplus have been? c. If the price of an iPod were $ 250, what would her consumer surplus have been? 2. An early freeze in California sours the lemon. Explain what happens to consumer surplus in the market for lemons. Explain what happens to consumer surplus in the market for lemonade. Illustrate your answers...

Federal government of the United States, Inverse demand function, IPod 678  Words | 2  Pages

Open Document

Consumer Producer Problem

--- // consumer-producer.c #include #include #include #include #include "buffer.h" #define RAND_DIVISOR 100000000 //random function setup pthread_mutex_t mutex; //setup mutex lock sem_t full, empty; //setup binary semaphores buffer_item buffer[BUFFER_SIZE]; //setup buffers int counter; //setup buffer counter pthread_t tid; //setup thread ID pthread_attr_t attr; //setup thread attributes void *producer(void *param); //producer thread void *consumer(void *param);...

Concurrency control, Deadlock, Lock 462  Words | 5  Pages

Open Document

Explain the Importance of Cost, Revenue and Profit for a Business Organisation

importance of cost, revenue and profit for a business organisation 1. Cost Profit is the different between the selling price and the production cost. Product cost include not only the cost of manufacturing a product but also all the other costs incurred in the process of producing or delivering a product or service. 2. Revenue The revenue of a business is, the income from its operations. It is important for the business to make the gap between costs and revenue as wide as possible...

Cost, Costs, Fixed cost 586  Words | 3  Pages

Open Document

Introduction to Micro Econ

social welfare. Uncertain. A Subsidy is like an inverse tax. Consumers and producers benefit. The demand curve shifts down shifting the equilibrium, lower price for consumers and greater quantity sold for producers. Consumer surplus rises and producer surplus rises (area under the new price they receive). However the welfare is the sum of the new consumer surplus and the producer surplus, minus the government’s expenses. Depending on how much the government is spending to subsidies this industry...

Cost, Costs, Economic surplus 1334  Words | 6  Pages

Open Document

Consumer Surplus

Consumer Surplus The term surplus is used in economics for several related quantities. The consumer surplus (sometimes named consumer's surplus or consumers' surplus) is the amount that consumers benefit by being able to purchase a product for a price that is less than the most that they would be willing to pay. The producer surplus is the amount that producers benefit by selling at a market price mechanism that is higher than the least that they would be willing to sell for. Note that producer...

Economic surplus, Microeconomics, Neoclassical economics 640  Words | 2  Pages

Open Document

Supply and Demand and Consumer Incomes

Consider the demand for computers. For each of the following, state the effect on demand: a. An increase in consumer incomes b. An increase in the price of computers c. A decrease in the price of Internet service providers d. A decrease in the price of semiconductors e. It is October, and consumers expect that computers will go on sale just before Christmas. Answer a. An increase in consumer incomes will increase the disposable income, so the demand will increase. b. An increase in the price...

Consumer theory, Demand curve, Economic equilibrium 801  Words | 3  Pages

Open Document

Micro economics revision

supply Qs = 25 + 5P, where P is in dollars per chicken and Q is in thousands of chicken per week. How much will the equilibrium price and quantity change if people are now willing to buy 15,000 fewer chickens at each price as a result of lower beef prices? 6. Lydia owns a noodle stand on Nathan Road in Hong Kong. She is convinced that by decreasing the price of her noodles by half, her total revenues (TR) will double. Explain to her why this would be the case only if PED of her own noodles was -6...

Economic equilibrium, Economics terminology, Income 627  Words | 3  Pages

Open Document

What are the proper objectives of competition policy?

What are the Proper Objectives of Competition Policy? Competition policy promotes market competition by regulating anti-competitive behaviour undertaken by firms. The fundamental reason for competition policy is to allow the smooth functioning of the free market and the price mechanism, thus maximising economic welfare. As we have seen illustrated by the first theorem of welfare economics, competitive equilibrium in markets leads to Pareto efficient outcomes, at which the sum of producer surplus...

Competition, Competition law, Consumer protection 1799  Words | 5  Pages

Open Document

What Does It Mean to Be a Consumer?

What does it mean to be a consumer : Issues, Problems, Challenges, Attractions? A consumer can be defined at its most basic level as “an individual who buys products or services for personal use.” There is a common misconception that we can only consume tangible products or things which we can physically use. However, as mentioned in the definition above we can also consume leisure activities- such as watching television, surfing the internet or going for a swim, we can consume education by...

Abraham Maslow, Consumer, Fundamental human needs 1504  Words | 4  Pages

Open Document

Cigarette Tax in America

Channel Four News Team | Effects of Cigarette Tax In America | Cigarette Tax | | Justin Hochstetler, Rachel Krug, Robbie Mostek, Randi Westervelt | 12/5/2011 | | Cigarette Consumption What are the economic impacts of cigarette taxes on producers, consumers, and government in the United States? The motivation of the study is to find out whether cigarette taxes really decrease consumption. If they don’t, what are the possible alternative solutions to decrease consumption? Lastly...

Cigarette, Cigarettes, Gastroesophageal reflux disease 1911  Words | 5  Pages

Open Document

Consumer Protection

Ruff (1995) stated that the criminal liability of producers, distributors and suppliers of unsafe products is covered under Part II of the Consumer Protection Act of 1987, which has mandated a general safety requirement. The producer, distributor or supplier of unsafe products incur criminal liability for failure to exercise due diligence. The law is strict but the criminal liability can be dispensed with after showing that they exercised due diligence and have reasonable grounds to believe that...

Common law, Consumer protection, Duty of care 2377  Words | 7  Pages

Open Document

What Happens to Economy When Goverment Raises Taxes

What Happens to Economy when Government Raises Taxes? Terry Burchett ECO100 Survey of Contemporary Economic Issues Ramzi Salloum July 23, 2012 While should the government increases tax rate on everyone as a way to equalize incomes and wealth? It would make it easier for many people and make it fair for the poor and middle class citizens. Government officials that are elected are there to take care of policies and programs. Because when Gross Domestic Product( GPD) taxes increase spending...

Government spending, Income, Income tax 1040  Words | 3  Pages

Open Document

Consumer Decision Making Process

INTRODUCTION We all have to make choices. One of those most important decisions made in our life are based on the market - buying goods. No one buy goods unless they have a problem, a need or a want. The Consumer Decision Making Model can be applied with any economics decision you have to make. The goal in creating this model was to analyze how individuals sort through facts and influences to make decisions that are logical and consistent for them. Think like an economist with this convenient tool...

Business Decision Mapping, Cognition, Consumer protection 2233  Words | 7  Pages

Open Document

Explain how the price mechanism brings about the equilibrium price and also how and why the government would intervene in the market place.

Market equilibrium is a situation where at a certain price level, the quantity supplied by producer and the quantity demanded by consumers are equal. It is a situation where there is no tendency for change in either price of product or quantity supplied and demanded. This situation is brought about by forces of the price mechanism, the interplay of demand and supply market forces. The situation of market equilibrium is represented by the above figure. Where the two curves of demand and supply intersect...

Economic equilibrium, Economics terminology, Externality 1097  Words | 4  Pages

Open Document

Ethical Consumer and Fair Trade

QUESTION 3:Choose one of the theoretical approhes considered during the module, apply it to a particular issue or text and discuss how useful that approach is in analyzing, evaluating or questioning your chosen topic. Ethical Consumer and Fair Trade Introduction: Social responsibility and marketing ethics are natively controversial , continues research in this area represents conflicts and challenges addressed to marketers in respect to socially responsible approach to marketing activities(Laczniak...

Business ethics, Corporate social responsibility, Ethical consumerism 1886  Words | 6  Pages

Open Document

Features of a Good Tax System

QUESTION 1 Discuss the features of a good tax system and review the Malaysian income tax system in relation to those relevant features. Explain how you would bring about a better tax system, particular with reference to personal taxation, if you were given such an opportunity. Taxation means the government impose charges on the citizen and corporate entities in order to finance their expenditure. Taxation is use to encourage or discourage certain economic decision such as reduction in taxable...

Income tax, Progressive tax, Proportional tax 2119  Words | 6  Pages

Open Document

consumer behaviour

Disneyland is what people experienced by visiting this place and what information they got from various sources such as friend, advertisement and TV.The affective component is a consumer’s emotions or feeling about a particular product or brand. People like Disneyland because it could give us a joy and happiness. Especially in the family could enjoy good time in Disneyland, improve relationship with their family. It could have a good emotion or feeling about it.Finally, Conation concerns how the consumer...

Advertising, Attitude change, Attribution theory 1208  Words | 4  Pages

Open Document

Economics Review

What is the formula for measuring price elasticity of demand? Percentage change in quantity demanded / Percentage change in price    When the price elasticity coefficient is less than 1, the percentage change in quantity demanded is smaller than  the change in price.   When the price elasticity coefficient is equal to 1, the percentage change in quantity demanded is equal to  the change in price.   When the price elasticity coefficient is greater than 1, the percentage change in quantity demanded...

Externality, Market failure, Moral hazard 1168  Words | 5  Pages

Open Document

Australian Tax Reform

Debt, Death & Taxes 16th October 2002 Robert Camilleri The Conservative government doctrine is essentially defined as the party of tax relief. But now conservatives have converted themselves into the party of debt retirement. The conservative government has lost interest in tax cutting and instead wants to devote the surplus tax payments and asset sales over the next 3 years to paying down the national debt. The Howard-Costello government, seen as militant debt hawks, has announced their goal...

Balance sheet, Economics, Finance 1479  Words | 5  Pages

Open Document

What Are the Arguments for and Against Intervention?

protection, promoting social responsibility or paternalism, which happens when government attempts to manage the needs or control the conduct of individuals.  Government intervention has its price, not only the financial costs of the intervention, but may include losses of individual freedoms and unintended consequences.  This question will examine numerous areas in which the Government intervenes in and evaluate whether it does so in a positive or negative way. A conclusion will then be made...

Art intervention, Employment, Environment 716  Words | 3  Pages

Open Document

Tax on Sugary Foods Econ IA

DP Internal Assessment Candidate’s name: Nishant Bhushan Candidate number: Teacher: Ms. Reena TIkku Source of the Article: http://news.yahoo.com/dietary-guidelines-panel-advises-policy-changes-soda-tax-215222455--politics.html?soc_src=mail&soc_trk=ma Title of the Article: Dietary guidelines panel suggests tax on sugary foods Date of Article: February 20th 2015 Date Commentary Written: 16/03/15 Word Count (maximum of 750): 714 Commentary Number: 1 Commentary relates to ticked section of syllabus:...

Economics, Economics terminology, Elasticity 1567  Words | 6  Pages

Open Document

How One Can Learn from the Dell Effect

HOW ONE CAN LEARN FROM THE DELL EFFECT Fall 2008 HOW ONE CAN LEARN FROM THE DELL EFFECT ABSTRACT Dell has entered the computer industry for a short period of time but the impacts of Dell will last a lifetime. Dell introduces a new business plan that no other computer producer has ever used and this just in time production allowed Dell to cut many costs. Because of the advantages in costs Dell was able to offer their products at a very competitive...

Cost, Customer, Customer service 1832  Words | 6  Pages

Open Document

To What Extent Does Tax Evasion Affect the Society

To what extent does tax evasion affect the society? Word counts: 1510 words Introduction: The importance of the revenue to a country is well known in the world. The global financial system has more interconnections now than at any other time in history. (Simser.J, 2008, p.131). Tax evasion is one of most common crimes that damage the order of revenue. This is closely affecting the market economy and daily lives. Normally, most commentators consider tax evasion profoundly unethical...

Capitalism, Economic system, Economics 1596  Words | 5  Pages

Open Document

Opposition to the Fair Tax

FairTax 1. Will transfer tax burden from upper class to middle class 2. Will negatively impact housing market and charities 3. Will create huge underground economy and will lead to higher rates on consumption than predicted 4. Will not abolish IRS, but rather require increased government monitoring to ensure tax compliance 5. Not enough evidence of practicality and beneficial results of FairTax to justify risks Pretty much everyone would agree that our current tax system is almost comically...

Consumption tax, Income tax, Progressive tax 1745  Words | 4  Pages

Open Document

Effectiveness of Fat Tax

Effectiveness of ‘fat tax: The effectiveness of the fat tax Elasticity: when consumer is changing pattern of buying according to the change in price, eg. When its espcial they tend to buy more and if the price rises they don’t want a lot and if they don’t need they don’t even buy it. Inelasticity: when consumers buy products that they need the most and even if the price rise they buy it. Basic needs products, and if the prise is low they don’t buy more than what they need. The link between...

Health, Malnutrition, Nutrition 1173  Words | 4  Pages

Open Document

Examine How Market Equilibrium Is Determined and Explain Why Governments Intervene in Markets

Asifa Kwong Examine how market equilibrium is determined and explain why governments intervene in markets. Use diagrams to illustrate your answer. Equilibrium refers to the idea that there is no tendency to change, and market equilibrium is a situation where the price and the quantity supplied and the quantity demanded of a particular good are equal. The interaction between demand and supply can change the price mechanism which determines the prices and quantity of the goods and services that will...

Economic equilibrium, Externality, Market 774  Words | 3  Pages

Open Document

Consumer Psychology and Marketing Communication

Week 1: Consumer Psychology and Marketing Communication PSY/322 June, 11 2013 A business needs to have the ability to properly understand their consumer base so they are able to produce products and make marketing strategies that will appeal to the target audience. Consumer psychology allows the business to obtain information that will lead to understanding the consumers. Marketers want to understand many factors related to the consumers personalities and how it influences his or...

Business, Cognition, Consumer 913  Words | 3  Pages

Open Document

Economics - How a Shrinking Gdp Affects the Economy of Singapore

compared with 1.9% in Q1, which establishes the fact that the US economy is growing at an anaemic rate. In addition Singapore’s second largest trade partner the 27-nation European Union (EU) is currently in recession and does not have the ability to purchase the same amount of Singapore’s goods and services as they did before (demand declines). From the article, it can be inferred that demand for our exports has decreased. The cause can be attributed primarily to 2 main reasons; 1) The weakening of the...

Economic growth, Economics, Fiscal policy 1553  Words | 5  Pages

Open Document

Critically evaluate the statement that Malaysian will benefit from a change from sales and services tax to GST.

benefit from a change from sales and services tax to GST. Every country has their rules and specific law to maintain or increase country’s income. In Malaysia, government has projected the current SST to GST which means to regenerate tax collection. GST can define as multi-stage tax for goods and services on domestic consumption. It also can be known as value added tax which is a type of consumption based on the tax charged to all taxable supply of goods. Those goods and services tax are providing...

Consumption tax, Indirect tax, Sales tax 1235  Words | 5  Pages

Open Document

What Are the Benefits of Mobile Technology

The demand for a product is inelastic with respect to price if: | 1) | consumers are largely unresponsive to a per unit price change. | | 2) | the elasticity coefficient is greater than 1. | | 3) | a drop in price is accompanied by a decrease in the quantity demanded. | | 4) | a drop in price is accompanied by an increase in the quantity demanded. | Save Question 2 (5 points)   A supply curve that is parallel to the horizontal axis suggests that: | 1) | the industry is organized...

Cost, Costs, Economics 1149  Words | 6  Pages

Open Document

How does the fiscal policy affect economic activity and income distribution in the Australian economy?

How does the fiscal policy affect economic activity and income distribution in the Australian economy? Fiscal Policy is a macroeconomic policy that can be used by the government to regulate aggregate demand and production. Fiscal Policy is implemented through the government’s annual budget and also involves the regulation of aggregate demand by the government changing its level of planned spending (G) and planned tax revenue (T). Fiscal policy has the power to redistribute income, reallocate resources...

Economics, Income tax, Keynesian economics 782  Words | 3  Pages

Open Document

Consumer Goods Classification

Introduction: The classification of goods (physical products) is essential to business because it provides a basis for determining the strategies needed to move them through the marketing system. The two main forms of classifications are consumer goods and industrial goods. We are interested in this paper to elaborate more on Consumer Goods Classification only. Consumer Goods: Consumer goods are defined as goods that are bought from retail stores for personal, family, or household use. ...

Convenience store, Final goods, Good 1160  Words | 4  Pages

Open Document

Ecosystem and Producer Herbivore Carnivore

your list. Imagine what would happen if you changed that one abiotic factor. Describe one possible outcome of changing the abiotic factor you have chosen. (Hint: Think of how changing the abiotic factor would influence one of the biotic parts of the ecosystem.) (1 mark) Water – the human would eventually die off because they need water to live. 2. A. What is the difference between a producer and a consumer? (1 mark) A Producer is an organism that...

Abiotic component, Biotic component, Ecosystem 735  Words | 4  Pages

Open Document


towards Disneyland is what people experienced by visiting this place and what information they got from various sources (friends, ads). Affective component considers a person’s feelings and emotional response to an attitude object. It is mostly learnt during our daily live. This is the way as we feel. We may love the place as Disneyland. It gives joy, happiness and join the family. It could have a good emotion or feeling about it. Conation, the final component concerns how the consumer will behave with...

Advertising, Attitude change, Change 1027  Words | 2  Pages

Open Document

Finance 370

1. Use the graph below for the following: a. Shade in the area that represents consumer surplus and label it area A. b. Shade in the area that represents producer surplus and label it area B. c. What is the numerical value for consumer surplus? d. What is the numerical value for producer surplus? 2. Determine what percentage of a tax would be borne by consumers in each of the following situations: a. Price elasticity of demand is 0.5, and price...

Consumer theory, Economic surplus, Economics terminology 724  Words | 6  Pages

Open Document

Become a StudyMode Member

Sign Up - It's Free