custom writing services

Need more information?: Chat with us

order download
Average score 4.96 out of 5 based on 673 opinions

1 What is the statutory incidence of this tax?

For each $100 that an employee earns, the employer pays $4.45 in Canada Pension Plan premiums and the employee pays $4.45 in Canada Pension Plan premiums. (25 points)

1.1 What is the statutory incidence of this tax? (5) points

1.2 Draw a diagram illustrating a situation where the economic incidence of the tax and the statutory incidence of the tax are the same. Explain clearly in words and using your diagram what economic incidence means. (10)points

1.3 When would the economic incidence of CPP premiums be 100% on employees? Illustrate with a diagram. (10) points

A California legislative committee has voted to legalize marijuana, sell it through state liquor stores, and impose a $50 per ounce tax on it, as a way of solving the state’s budget deficit problems. A study by the Rand Corporation reports that the street (retail) price of marijuana in California is $75 to $100 per ounce; however legalization is expected to reduce production costs. (50 points)

If marijuana was legal, the commercial supply of marijuana in California would be given by:

P s=25+Q s OR Qs=Ps-25

where Q is the quantity supplied in millions of ounces, and P is the price per ounce

The demand for marijuana in California is given by P d=150 -4Q d OR Qd=37.5-0.25Pd

2.1. Graph the before tax supply and demand for marijuana, and work out the equilibrium price and quantity. (10)

2.2 Suppose a $50 per ounce tax on marijuana is implemented. Using the fact that Pd= Ps +tax substitute Pd in the demand curve. Draw the after-tax demand curve in terms of Ps on your diagram from part (2.1). (5)

2.3. Work out the after-tax quantity and prices. What is the economic incidence of a marijuana tax? How much revenue does it raise? (10)

2.4 Redraw your diagram from part (2.1). Using the fact that Ps =P d-tax substitute for Ps in the supply curve. Draw the after-tax supply curve in terms of Pdon your diagram. Confirm that this gives you the same results as the method used in parts (2.2) and (2.3). (10)

Marijuana – unlike alcohol or tobacco or gasoline – is a low maintenance plant that can easily be grown in one’s backyard or a kitchen window. Suppose that, if marijuana is legalized, the marginal cost of home-grown marijuana (of equivalent quality to store-purchased) is constant at $55 per ounce. How does the existence of an untaxed home-grown supply of marijuana change your analysis in part (2.4)? What happens to prices, quantities, and government revenue? Use a diagram to work out your answer. (15)

Jason spends all of his income on two goods: soda and pizza. The government introduces a new ‘soda tax’ that taxes sodas. (25 points)

3.1 Show the effect of a tax on soda on Jason’s budget constraint and optimal choice. (5)

3.2 Draw on your diagram the revenue raised by the tax on soda. (5)

3.3 What would Jason’s budget constraint look like if the government imposed a lump-sum tax that raised the same revenue as the tax on soda?

3.4 Using your diagram/analysis and the definition of Pareto efficiency, explain why the tax on soda is not Pareto efficient. (10)


  simple order process Pricing order download You have just landed to the most confidential, trustful essay writing service to order the paper from. We have a dedicated team of professional writers who will assist you with any kind of assignment that you have. Your work is handled confidentially with a specific writer who ensures you are satisfied. Be assured of quality, unique and price friendly task delivered in good time when you place an order at our website. banner We have a team of dedicated writers with degrees from all spheres of study. We readily accept all types of essays and we assure you of content that will meet your expectations. Our staff can be reached  via live chat, email or by phone at any given time with prompt response.  

Prices starting at:

High school
Undergrad.(yrs 1-2)
Undergrad.(yrs 3-4)
$10 / page
$10/ page
$12/ page
$15 / page
$17/ page

Note: The prices in the table above are applicable to orders completed within 14 days. Kindly see the full price table for more prices..

We urge you to provide as much information as possible to avoid many revisions. Set your deadline, choose your level, give payment information and relax while you track your work. We will deliver your paper on time. . 1 Are you in a quagmire and you are unable to complete your assignments? Do you doubt yourself on the quality of the essay you have written?  is here to assist you. We will offer you unmatched quality that is plagiarism free. Place an order at  for guaranteed  high grades. order download

we offer gifts to our paper help customersPayment Methods

you can request our services and pay via paypal

we offer gifts to our paper help customersOur Guarantees

  1. Zero plagiarism.
  2. 100% confidentiality.
  3. FREE Reference page
  4. High Quality papers
  5. 24/7 Customer support

Our Testimonials Testimonials

I ordered a 7 page college essay and was delivered on time. Thank you guys I will definitely order again!

, FL

Our statisticsOur Statistics

  • Orders Completed todate 65387

  • Number of writers 246

  • Satisfied customers 98.7%

  • Returning customers 92.3%

  • Orders placed today 204