0
An excise tax imposed by the government increases the cost of production for suppliers, which can lead to a decrease in supply as producers may reduce output or exit the market. This reduction in supply typically results in higher prices for consumers, as the tax burden is often passed on through increased retail prices. Consequently, the overall market equilibrium price rises, and the quantity supplied decreases, impacting both consumers and producers in the market.
What else can I help you with?
The government might enact a price ceiling in order to accomplish what?
The government may impose a price ceiling in order to increase supply.
In which category do subsidies excise taxes and regulation belong?
Subsidies, excise taxes, and regulations belong to the category of government interventions in the economy. They are tools used by governments to influence market behavior, affect supply and demand, and achieve specific economic and social objectives. Subsidies provide financial support to certain industries or sectors, excise taxes impose levies on specific goods to discourage consumption or raise revenue, and regulations set rules to ensure safety, fairness, or environmental protection.
What category does subsidies excise taxes and regulation belong in economics?
Government's influence on supply is the category that subsidies excise taxes and regulation belong in economics.
How would a new excise tax effect the supply curve?
It would probably cause the supply curve upwards and shift to the left.
What questions should be asked about an excise tax or government supply regulation to determine its purpose?
One question that should be asked is whether the government is using this excise tax or regulation as a way to try to keep people from buying the product because they think it is bad for them, as in the case of tobacco or alcohol. Another question that can be asked is whether the regulations are for the purpose of trying to control the environmental effects, as in the case of automobiles.
The government might enact a price ceiling in order to accomplish what?
The government may impose a price ceiling in order to increase supply.
In which category do subsidies excise taxes and regulation belong?
Subsidies, excise taxes, and regulations belong to the category of government interventions in the economy. They are tools used by governments to influence market behavior, affect supply and demand, and achieve specific economic and social objectives. Subsidies provide financial support to certain industries or sectors, excise taxes impose levies on specific goods to discourage consumption or raise revenue, and regulations set rules to ensure safety, fairness, or environmental protection.
What category does subsidies excise taxes and regulation belong in economics?
Government's influence on supply is the category that subsidies excise taxes and regulation belong in economics.
How would a new excise tax effect the supply curve?
It would probably cause the supply curve upwards and shift to the left.
What questions should be asked about an excise tax or government supply regulation to determine its purpose?
One question that should be asked is whether the government is using this excise tax or regulation as a way to try to keep people from buying the product because they think it is bad for them, as in the case of tobacco or alcohol. Another question that can be asked is whether the regulations are for the purpose of trying to control the environmental effects, as in the case of automobiles.
Does a price ceiling cause wasted resources?
yes, because when government impose price ceiling, the supply will decrease,but demand will increase, it will cause shortage, so it causes wasted resources.
How does legislation affect supply and demand?
Some things may be banned, or supplied free by Government. More usually supply and demand are manipulated by taxation policies.
How would Government restrictions affect consumer surplus?
Government restrictions would decrease consumer surplus because it shifts the supply curve to the left
What external factors affect marketing strategy?
There are many external and environmental factors that affect marketing. Some of these include economy, government, supply lines, and consumer trends.
Demand supply gap is reformed by government intervention. Explain the phenomenon by demand supply model?
The demand-supply gap occurs when the quantity demanded by consumers does not equal the quantity supplied by producers, leading to shortages or surpluses in the market. Government intervention, such as price controls, subsidies, or regulations, can help correct this imbalance. For example, if prices are too high, a government might impose price ceilings to increase demand and reduce excess supply. Conversely, if prices are too low, subsidies can be provided to producers to encourage higher supply, thus addressing the gap and moving the market toward equilibrium.
How does productivity affect supply?
no
How does subsidy affect supply?
It decreases cost of production and increases supply.
