1st question is hard to understand, 2nd question but a few questions...
a and b of the first part is ok, not much problem, just simultaneous equations and substitutions
How much of the tax is passed onto consumers??? i said $14, i referred this to the diagrams on pg 153....
In considering the incidence of tax is it strictly more appropriate to refer to slope or to elasticity? In a practical sense does it make any real differe?
first part is yes of course......but 2nd part i am stuck on, does it make a real difference???? what does that mean???
another question
"In determining the change in consumer spending on the amenity as a result of the tax is elasticity or slipe the relevant consideration?"
Yes the elsasticity does matter more, relatively inelastic and relatively elastic demand does determine how much less sepnding there is, but isnt this question very similar to the previous??
Another question
The govt decides to use the proceeds if the tax to finance public works that directly benefit the producer s and consumers of the tax amenity. Calculate tthe loss in producer and cinsumer surpluses as a result of the tax to determine whether or not the community is better off in monetary terms as a resul;t of this policy
I think its how much taken out due to DWL and how much the government can put back in,