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BEA111 Principles Of Economics 1

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Question:

Question 1

Consider a per-unit tax equal to that is collected from firms. Use supply and demand diagram(s) to demonstrate whether the

following statement is true or false and provide an explanation.

“The more elastic is demand the larger is the deadweight loss of the tax”

Question 2

Suppose that the Tasmanian government is considering imposing a per unit tax food products that have high sugar content. The tax is

to be collected from consumers. The objective is to reduce the consumption of sugar to improve health outcomes. You have been

hired by the Tasmanian government to evaluate the proposed tax. Use a supply and demand model to demonstrate whether the

following statement is true or false and provide an explanation.

“The total decrease in the consumption of sugar caused by the per-unit tax collected from consumers is larger the more elastic is

demand.”

Question 3

Consider a per-unit tax equal to  that is collected from firms. Use supply and demand diagram(s) to demonstrate whether the

following statement is true or false and provide an explanation.

“The more elastic is supply relative to demand the larger is the total tax bill paid by consumers”

Question 4

Consider a per-unit tax equal to  that is collected from consumers. Use supply and demand diagram(s) to demonstrate whether the

following statement is true or false and provide an explanation.

“The more elastic is demand relative to supply the larger is the total tax bill paid by consumers”

Cite This Work

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My Assignment Help (2020) Principles Of Economics 1 [Online]. Available from: https://myassignmenthelp.com/free-samples/bea111-principles-of-economics/consumption-of-sugar-to-improve-health.html
[Accessed 05 August 2021].

My Assignment Help. 'Principles Of Economics 1' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/bea111-principles-of-economics/consumption-of-sugar-to-improve-health.html> accessed 05 August 2021.

My Assignment Help. Principles Of Economics 1 [Internet]. My Assignment Help. 2020 [cited 05 August 2021]. Available from: https://myassignmenthelp.com/free-samples/bea111-principles-of-economics/consumption-of-sugar-to-improve-health.html.


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