A tax on cell phones would cause all of the following except: consumer surplus to fall...

A tax on cell phones would cause all of the following except:

		consumer surplus to fall
		business profits to fall
		total surplus to increase
		deadweight loss because less trades will occur.

Expert Solution

Total surplus to increase.

( Tax will lead to a reduction in the quantity of cellphones trades. Price of cellphones will increase. So consumer surplus will fall. On the other hand, producer surplus will fall because a part of the price will be lost in the form of taxes. Total surplus is composed of producer surplus and consumer surplus. Therefore, a reduction in Consumer surplus and producer surplus will lead to a decrease in total surplus not Increase in total surplus. )

Rahul Sunny answered 3 years ago

Find and graph the Post Tax Consumer Surplus,Producer Surplus,Tax Revenue, Dead Weight Loss, and the economic...

Find and graph the Post Tax Consumer Surplus,Producer Surplus,Tax Revenue, Dead Weight Loss, and the economic incidence of the Tax Demand is P=18-2Q Supply is P=Q Tax is $6 per unit

Which of the following would cause prices to rise and real GDP to fall in the...

Which of the following would cause prices to rise and real GDP to fall in the short run? Question options: an increase in the expected price level an increase in the capital stock an increase in the quantity of labor available

Answer each of the following questions about demand and consumer surplus a. What is consumer surplus,...

Answer each of the following questions about demand and consumer surplus a. What is consumer surplus, and how is it measured? b. What is the relationship between the demand curve and the willingness to pay? c. Other things equal, what happens to consumer surplus if the price of a good falls? Why? Illustrate using a demand curve. d. In what way does the demand curve represent the benefit consumers receive from participating in a market? In addition to the demand...

A sales tax on sellers of a good leads to a loss of consumer surplus, but...

A sales tax on sellers of a good leads to a loss of consumer surplus, but a price ceiling or a price floor on that same product will not. True or False?

Which of the following would cause the aggregate price level to fall and the equilibrium level...

Which of the following would cause the aggregate price level to fall and the equilibrium level of real GDP to increase in the short run? Question 9 options: a) the short-run aggregate supply curve shifts left b) aggregate demand shifts left c) the short-run aggregate supply curve shifts right d) aggregate demand shifts right

Show graphically the changes in Producer Surplus, Consumer Surplus, Deadweight Loss and Government Tax Revenue when...

Show graphically the changes in Producer Surplus, Consumer Surplus, Deadweight Loss and Government Tax Revenue when the government institutes a Tariff on imports? If the economy is a large economy show graphically an optimal tariff.

What happens to consumer surplus when a tax is implemented in the market? Be sure to...

What happens to consumer surplus when a tax is implemented in the market? Be sure to explain fully.

Ribosomes can normally be found in all of the following eukaryotic cell locations except: A. the...

Ribosomes can normally be found in all of the following eukaryotic cell locations except: A. the outer nuclear membrane B. the rough endoplasmic reticulum C. the mitochondrion D. the inner nuclear membrane E. the chloroplast

All of the following is true regarding the cell (plasma) membrane Except: a) It has amphipathic...

All of the following is true regarding the cell (plasma) membrane Except: a) It has amphipathic transmembrane protein b) It contains glycolipids and glycoproteins c) it has large pores to accommodate RNA movement in and out of the cell d) the proteins can float in the membrane e) cholesterol is in the membrane to increase the membrane’s fluidity 2) If you want to form protein from individual amino acids, you would a) dephosphorylate the amino acids b) use a negative...

Graph & label all the parts for: 1) Consumer Surplus & 2) Producer Surplus. Define both and discuss...

Graph & label all the parts for: 1) Consumer Surplus & 2) Producer Surplus. Define both and discuss (in your own words) the economic implications of both. These can be on the same graph.

Question