Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 25 Oct 2017 My Price 4.00

deadweight loss

You are watching the local news report on television with your roommate. The news anchor reports that the state budget has a deficit of$100 million. Because the state currently collects exactly $100 million from its 5 percent sales tax, your roommate says, "I can tell them how to fix their deficit. They should simply double the sales tax to 10 percent that will double their tax revenue from S100 million to $200 million and provide the needed $100 million."

Will doubling the sales tax affect the tax revenue and the deadweight loss in all markets to the same degree? Explain.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Oct 2017 07:10 PM My Price 4.00

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