Question and answer
If the government doubled the tax on gasoline, would the tax revenues increase or decrease? Why? Use graphs as needed and explain your answers thoroughly
Other things being equal, if the government doubled the tax, tax revenues would increase. But of course, this is just theoretically true. As gasoline taxes would increase, the quantity demanded MIGHT decrease. [ So, in reality, the first statement is not absolutely true. ]
Get an answer
Original conversation
User: If the government doubled the tax on gasoline, would the tax revenues increase or decrease? Why? Use graphs as needed and explain your answers thoroughly

Weegy: Other things being equal, if the government doubled the tax, tax revenues would increase. But of course, this is just theoretically true. As gasoline taxes would increase, the quantity demanded MIGHT decrease. [ So, in reality, the first statement is not absolutely true. ]
Expert answered|nami008|Points 252|

User: What are the gains and losses of international trade? What happens when tariffs are imposed, in terms of the importing and exporting countries? Use graphs as needed and explain your answers thoroughly.

Weegy: One of the gains and losses that I can think of is the Forex gains and losses. The exchange rates vary from time to time. This leads to gains and losses depending on the strength of a currency. [ This is applicable to International trade because there is no universal currency, that is why if you will transact with other countries, you will have to incur FOREX gains or losses. If tariffs will be imposed, it is possible that the demand would decrease as tariffs are extra charges, meaning an additional cost. ]
Expert answered|nami008|Points 252|



Question
Asked 8/2/2013 6:48:21 AM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Assume that the government imposed a price floor on wages (minimum wage) in order to make sure that workers can earn a living wage. Is this a price floor? What are the economic implications of this action in the labor markets?
Weegy: Assume that the government imposed a price floor on wages (minimum wage) in order to make sure that workers can earn a living wage. [ Is this a price floor? What are the economic implications of this action in the labor markets? National and local governments sometimes implement price controls, which are legal minimum or maximum prices for specific goods or services, in an attempt to manage the economy by direct intervention. There are two types of price controls: price ceilings and price floors. A price ceiling is the legal maximum price for a good or service, while a price floor is the legal minimum price. Although both a price ceiling and a price floor can be imposed, the government usually only selects either a ceiling or a floor for particular goods or services. When prices are established by a free market, then there is a balance between supply and demand. When the government imposes price controls, then there will be either excess supply or excess demand, since the legal price is often very different from the market price. Indeed, the government imposes price controls for the very reason that it is not satisfied with the market price. A price ceiling creates a shortage when the legal price is below the market equilibrium price, but has no effect on the quantity supplied if the legal price is above the market equilibrium price. A price ceiling that is below the market equilibrium price creates a shortage that causes consumers to compete vigorously for the limited supply. Supply is limited because suppliers are not getting the prices that would allow them to earn a profit. Likewise, since supply is proportional to price, a price floor creates excess supply if the legal price is above the market price. Suppliers are willing to supply more at the price floor than the market wants at that price. ] (More)
Question
Expert Answered
Asked 8/2/2013 7:17:30 AM
0 Answers/Comments
Assume that the government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of this action in the gasoline markets?
Weegy: A price ceiling is a legal maximum price for a good, service, or resource. [ At the time, the theory was that if the government imposed a price ceiling on food, prices would stop going up and everyone would have the food they wanted at the price they wanted. Of course, this assumes that people do not behave like people. Remember that prices are the result of the equilibrium of supply and demand. Also remember that these two forces are completely shaped by human nature. The law of demand, which governs consumer behavior, says that as prices fall, consumers have an incentive to buy more, and as prices rise, consumers have an incentive to buy less. The law of supply, which governs producer behavior, says that as prices rise, producers have an incentive to produce more, and as prices fall, producers have an incentive to produce less. What effect does a price ceiling have on the market for food? Look at the incentives. A price ceiling encourages consumers to purchase but discourages producers from producing. Assume that meat is currently selling for $5.00 per pound. Consumers feel that the price is too high, so they petition government for a price ceiling of $3.00 per pound. Representatives, senators, and presidents all like to get re-elected, so they cater to consumers and enact the price ceiling. The $3.00 price signals to consumers to purchase more, but it signals to producers to produce less. The result of the price ceiling is a shortage of meat at the price of $3.00 per pound. At that price, more meat is demanded than is supplied. Consumers got a price ceiling of $3.00, but many consumers did not get any meat. ] (More)
Question
Expert Answered
Asked 8/2/2013 7:30:17 AM
0 Answers/Comments
17,451,230 questions answered
Popular Conversations
Factor the expression. 90x^2 + 33x + 3
Weegy: 90x^2 + 33x + 3 = 3(5x + 1)(6x + 1)
9/20/2014 1:19:07 AM| 5 Answers
What are some of the inventions and ideas attributed to Leonardo da ...
Weegy: And Leonardo da Vinci, who is known for his paintings, only managed to finish 17 paintings ... deficient social ...
9/20/2014 7:55:12 PM| 3 Answers
If your muscles are not getting enough oxygen during exercise, they ...
Weegy: If your muscles are not getting enough oxygen during exercise, they will stop moving. This is FALSE.
9/20/2014 4:37:01 PM| 2 Answers
From his time in Congress, Johnson was known for his skills in ...
Weegy: The answer is A. compromise. User: President Ford’s policy toward the Soviet Union focused on A. changing ...
9/20/2014 12:28:36 AM| 1 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
P
C
P
C
L
Points 2270 [Total 26668]| Ratings 5| Comments 2220| Invitations 0|Offline
S
L
1
L
P
C
1
Points 2114 [Total 8645]| Ratings 9| Comments 2024| Invitations 0|Online
S
L
C
P
C
1
L
L
P
C
1
Points 1731 [Total 17670]| Ratings 12| Comments 1611| Invitations 0|Offline
S
L
1
1
1
1
L
1
L
Points 1683 [Total 11463]| Ratings 0| Comments 1683| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
P
C
Points 1509 [Total 18681]| Ratings 5| Comments 1459| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 609 [Total 11855]| Ratings 0| Comments 609| Invitations 0|Offline
S
L
Points 535 [Total 1205]| Ratings 0| Comments 535| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
P
C
Points 530 [Total 19061]| Ratings 1| Comments 520| Invitations 0|Offline
S
1
L
L
Points 428 [Total 5552]| Ratings 4| Comments 388| Invitations 0|Offline
S
Points 64 [Total 64]| Ratings 2| Comments 34| Invitations 1|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.