Answer to Question #70710 in Macroeconomics for john




 Suppose Korea's new government increased VAT by 5% point. Explain the effect of tax increase using a D and S curves. Show how would this D and S change result in IS-LM analysis.
If Korea's new government increased VAT by 5% point, then the tax increase will cause the decrease in supply, so the S curve will shift to the left causing increase in equilibrium price and decrease in equilibrium quantity.
dear student,

any new policy/ implementation on economy will create problems
initially similarly gst will initially create some issues for
taxpayers in the long run, gst will have quite a favourable impact
on indian economy some sectors will have more favourable impact
compared to others under the proposed gst gst will have favourable impact on
organised logistic industry and modernised warehousing
gst will remove cascading
effect of taxes gst will increase national income in long run

regards an increase in the input price will lead to a decrease in the supply and no change in the quantity demanded.the following figure explains how an increase in the input price would affect the equilibrium price and equilibrium quantity.a. the market supply falls with the increase in the input prices.b. this leads to a leftward shift in the supply curve from s2 to s1.c. at the initial price op1, excess demand of q1-q1'.d. this excess demand implies that some consumers will have to pay a higher price to purchase the extra units of output.e. the rise in the market price will continue until it reaches op2.f. at op2, the new supply curve s2 intersects the initial market demand curve d1 at e2.g. e2 if the new equilibrium, op2 is the new equilibrium price, and oq2 is the new equilibrium output.h. at the new equilibrium, the price has increased and the quantity has fallen. hi,

lots of great explanations below, but i fear they might be difficult to truly conceptualize. 

let's start with a pie!

if there's a pie in front of us, that is the market. we'll call it 100 units of pie

we cut the pie in half - one piece (50 pie units) for you, and one piece (50 pie units) for me

scenario 1: we do nothing, we both have 50% market share.

scenario 2: i eat half my pie. my pie slice is now 25 units, yours is still 50 units. as a result, you have 67% of the market share and i have 33%. my "revenues" have fallen and my market share has fallen. your revenues haven't changed but you've gained market share

scenario 3: not only do i eat half my pie, but you also eat 20% of yours. still, i ate more, so even though your "revenues" are down, you've still gained market share.

scenario 4: we both get given more pie (yay). but, i get a whole other 50 units, and you only get 5 more. your "revenues" are up, but you've still lost market share!

i've created the below image for you to visualize this better (click on it to blow it up)...hope this helps! price elasticity of demand is -3price is rs 10quantity is 100 unitschange in price is 50%ed = p/q *change in q/change in p-3 = 10/100 * change in q / 50-3 = change in q/500change in q = 500*3 = 1500 as the distance between the source and the metal is increased, the intensity of light decreases becausealso, the photocurrent is directly proportional to the intensity of light and also to the number of electrons emitted.hence, the curve d is the appropriate curve representing above equation. answer: (3) recognition of costs associated with the acquisition of the fixed assets on the income statement. none of the costs associated with the acquisition of the fixed assets (mowing equipment and truck) have been recognized as expenses on the income statement.the fixed assets of the business provide benefits to the company and its users over its economic lite. depreciation allocates the cost of long-term fixed assets to expense over its useful/ economic lite. the benefit provided by the company during the period should be recognized as an expense in that period.the recognition of depreciation expense on the income statement will result in reducing the net income. please find the attached solution in doc file. ok if all taxes should be equal why does new york have 8.5 sales tax in some counties and 7.25 in other counties? i mean shouldn't it all be fair. plus new yorker's have an additional tax of approximately 32 cents per gallon that other states don't have so shouldn't they have to get rid of that. i mean that isn't fair to new york state filling station owner's. 

see none of it is fair. you pick and choose where you live and you pay the taxes. you decide where you buy from and whether local or off the internet. this is just another way for the government to get more of your dollars and has nothing to do with being fair to other businesses hi @sam\_cat - there was another topic on this query. i can't find it, so i've tweaked yours to make it more searchable moving forwards. 

this is to do with the direct debit figure. we look at your prices for the two year plan, and the annual consumption of the property, getting an annual spend and a monthly cost (if you divide that figure by 12). the tariff that you're on now just displays your current direct debit, which will of course take into account your current credit balance. 

tim in the case of a crisis, like our economy, the president can declare martial law.anyone (not just minority) who dont cooperate ect. with the new world order agenda, or that cant contribute to the government will be gathered by federal agents and taken to concentration camps.god forbid we cant pay our taxes! at least thats the way i understand it. :roll\_eyes:

[[image]](https://aws1.discourse-cdn.com/business6/uploads/dynamobim/original/3x/6/3/6393f7d9277c8a0ff2b48f07b1e2352f69f463b0.png "image")

t1 = [9, 9, 99, 9, 6, 7, 8];

t9 = dscore.list.chop(t1, 3);

a = t9;

t2 = get.valueatindex(a, 0);

t4 = [3, 2];

t10 = dscore.list.ofrepeateditem(t4, 3);

a1 = t10;

t3 = get.valueatindex(a1, 0);

t11 = t2<1l> + t3<1l>;

a2 = t9;

t5 = get.valueatindex(a2, 1);

a3 = t10;

t6 = get.valuea…