Carlos Graterol

Exercise 8

1)A.) Tax A – 1,250

Tax B – 1,000
Tax C – 1,500
Tax D – 1,125
Tax E – 1,125
Tax F – 500

B.) Tax A– 12%

Tax – B – 6.67%
Tax – C – 10%
Tax – D – 7.5%
Tax – E – 7.5%
Tax – F – 3.33%

C Tax A – 15%
Tax B – 10%
Tax C – 10%
Tax D – 5%
Tax E – 7.5%
Tax F – 0%

2) A) Tax A – 3,000
Tax B – 2,000
Tax C – 2,500
Tax D – 1,500
Tax E – 1,500
Tax F – 500

B) Tax A – 12%
Tax B – 8%
Tax C – 10%
Tax D – 6%
Tax E – 6%
Tax F – 2%

C) Tax A – 20%
Tax B – 10%
Tax C – 10%
Tax D – 2.5%
Tax E – 0%
Tax F – 0%
3) A) Proportional
B) Progressive
C) Proportional
D) Regressive
E) Regressive
F) Regressive

4)

5) A) EQ w/o Tax – 25
B) EP w/o Tax $3.00
C) EQ w/Tax 20
D) EP w/Tax $5.00

6) .375 Inelastic

7) Buyers 80%
Sellers 20%

8) $6,250

9)

10) A) EQ w/o Tax – 25

B) EP w/o Tax $3.00
C) EQ w/Tax 15
D) EP w/Tax $4.00

11) 2, Elastic

12) Buyers 50%

Sellers 50%

13)10,000

14) Decreases
Increases
Increases