Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / World famous Burpee Beer is brewed in the small town of West Burpee. Currently, the town o...

World famous Burpee Beer is brewed in the small town of West Burpee. Currently, the town of West Burpee levies a $2 per-case tax on all Burpee Beer, and the brewery sells 20.000 cases a year at

World famous Burpee Beer is brewed in the small town of West Burpee. Currently, the town of West Burpee levies a $2 per-case tax on all Burpee Beer, and the brewery sells 20.000 cases a year at a price, that includes the tax, of $20 per case. The mayor of West Burpee has decided to erect a statue of himself in the town square at a cost of $20,000, and wants to raise the money from additional tax revenue from sales of Burpee Beer. He has asked each of the three town council members to come up with a plan to raise the additional $20,000. Council member Simpson advises increasing the percase tax by S1. Council member Milhouse advises raising the tax by 52 per case. Council member Flanders advises reducing the current tax by $0.50 per case For all of the following questions, keep in mind that the objective is to raise a total of S75,000 in tax revenue. Additionallyassume supply is perfectly elastic If the mayor chooses Simpson's plan, the total cases of beer that would need to be produced to increase tax revenue by exacty 20.000 S cases If the mayor chooses Milhouse's plan, the total cases of beer that would need to be produced to increase tax revenue by exactly $20,000 is cases If the mayor chooses Fianders' plan, the total cases of beer that would need to be produced to increase tax revenue by exactly $20,000 is cases Under Simpon's plan, the price elasticity of demand for Burpee Seer is if the tax revenue increases by exactly $20,000 Under Milhouse's plan, the price elasticity of demand for Burpee Beer is if the tax revenue increases by exactly $20.000. Round your response to the nearest two decimal places. Under Flanders' plan, the price elasticity of demand for Burpee Beer is if the tax revenue increases by exactly $20,000. Round your response to the nearest two decimal places. Under Simpson's plan, Burpee Beer will receive as of total revenue of the tax revenue increases exactly by 520,000 Under Milhouse's plan. Burpee Beer will receive a s of total revenue if the tax revenue increases exactly by $20.000 Under Flanders plan, Burpee Beer will receive a s of total revenue if the tax revenue increases exactly by $20.000.

Apr 16 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions