What is the difference between a marginal tax rate and an average tax rate?

  1. What is the difference between a marginal tax rate and an average tax rate? 2 pts
  1. The federal government imposes a tax on sales of cigarettes. The following data are from a Gallup poll:

     Percentage who smoke, by Annual Household Income

     Income               Percentage who smoke

     Less than $12,000        34%

$12,000 – $35,999       28

$36,000 – $59,999       22

 $60,000 – $89,999       16

$90,000 +              13

Based on these data, would the federal cigarette tax be considered progressive or regressive? Be sure to define progressive tax and regressive tax in your answer.    3 pts

  1. Suppose the government decides to tax sales of pizza. Show the effect of the tax on the market for pizzas with the help of a graph. Assume the equilibrium price and quantity before the tax was imposed was $10 and 100 units. Per unit tax is $4. After the tax price and quantity are $12 and 80 units.
  2. Answer the following questions from the graph/Draw the graph:                                2 pts
  1. After the tax, what price do sellers receive?             1 pt  
  1. How much revenue is collected by the government? What is the buyers share and what is the sellers share?                             1 pt  
  1. Is there any deadweight loss? Calculate.                 1 pt

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10