you are an assistant to a senator who chairs an ad hoc committeeon reforming taxes o 4951200

February 11, 2021/in Business Homework Help Online /by Joseph

You are an assistant to a senator who chairs an ad hoc committeeon reforming taxes on telecommunication services. Based on yourresearch, AT&T has spent over $15 million on related paperworkand compliance costs. Moreover, depending on the locale, telecomtaxes can amount to as much as 25 percent of a consumer’s phonebill. These high tax rates on telecom services have become quitecontroversial, due to the fact that the deregulation of the telecomindustry has led to a highly competitive market. Your bestestimates indicate that, based on current tax rates, the monthlymarket demand for telecommunication services is given by Qd = 200 -5P and the market supply (including taxes) is QS = 2P – 150 (bothin millions), where P is the monthly price of the telecommunicationservices. The senator is considering tax reform that woulddramatically cut tax rates, leading to a supply function under thenew tax policy of QS = 2.4P – 150. How much money per unit would atypical consumer save each month as a result of the proposedlegislation . . .

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