{"id":124540,"date":"2022-01-28T16:21:30","date_gmt":"2022-01-28T16:21:30","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=124540"},"modified":"2022-01-28T16:21:30","modified_gmt":"2022-01-28T16:21:30","slug":"a-student-consumes-root-beer-and-a-composite-good-whose","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/a-student-consumes-root-beer-and-a-composite-good-whose\/","title":{"rendered":"A student consumes root beer and a composite good whose"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<\/tr>\n<tr>\n<td>A student consumes root beer and a composite good whose price is $1. Currently, the government imposes an excise tax of $0.50 per six-pack of root beer. The student now purchases 20 six-packs of root beer per month. (Think of the excise tax as increasing the price of root beer by $0.50 per six-pack over what the price would be without the tax.) The government is considering eliminating the excise tax on root beer and, instead, requiring consumers to pay $10.00 per month as a lump sum tax (i.e., the student pays a tax of $10.00 per month, regardless of how much root beer is consumed). If the new proposal is adopted, how will the student&#8217;s consumption pattern (in particular, the amount of root beer consumed) and welfare be affected? (Assume that the student&#8217;s marginal rate of substitution of root beer for other goods is diminishing.)<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<\/p>\n<p>\nA student consumes root beer and a composite good whose price is $1. Currently, the government imposes an excise tax of $0.50 per six-pack of root beer. The student now purchases 20 six-packs of root beer per month. (Think of <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-124540","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=124540"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124540\/revisions"}],"predecessor-version":[{"id":124541,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124540\/revisions\/124541"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=124540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=124540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=124540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}