Business, 10.03.2020 18:00 24swimdylanoh

The United States imposes an excise tax on the sale of domestic airline tickets. Let’s assume that in 2006 the total excise tax was $5.80 per airline ticket (consisting of the $3.30 flight segment tax plus the $2.50 September 11 fee). According to data from the Bureau of Transportation Statistics, in 2006, 656 million passengers traveled on domestic airline trips at an average price of $389.08 per trip. The accompanying table shows the supply and demand schedules for airline trips. The quantity demanded at the average price of $389.08 is actual data; the rest is hypothetical.
Price of trip Quantity of trips demanded
(millions)
Quantity of trips supplied
(millions)
$389.17 655 1,100
$389.08 656 1,000
$384.00 685 685
$383.28 700 656
$383.27 701 655
a. What is the government tax revenue in 2013 from the excise tax? b. On January 1, 2014, the total excise tax increased to $6.20 per ticket. What is the quantity of tickets transacted now? What is the average ticket price now? What is the 2014 government tax revenue? c. Does this increase in the excise tax increase or decrease government tax revenue?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 07:00

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent

Answers: 3

Answer

Business, 22.06.2019 21:00

After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years.your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.

Answers: 3

Answer

Business, 23.06.2019 00:00

Both renewable and nonrenewable resources are used within our society. how do the uses of nonrenewable resources compare to the uses of renewable resources?

Answers: 1

Answer

Business, 23.06.2019 01:30

Which of the following is considered part of a country’s infrastructure?

Answers: 1

Answer

You know the right answer?

The United States imposes an excise tax on the sale of domestic airline tickets. Let’s assume that i...

Questions