George and margaret wealthy are in the 42 percent tax bracket, considering both federal and state personal taxes. norman briggs, then ceo of community general hospital, has been aggressively pursuing the couple to contribute $400 thousand to the hospital’s soon-to-be-built cancer care center. without the contribution, the wealthy’s taxable income for 2014 would be $3 million. what impact would the contribution have on the wealthy’s 2014 tax bill?

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.