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16. You are an assistant to a senator who chairs an ad hoc committee on...

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Accounting

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16. You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research. AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer's phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to a highly competitive market. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services is given by O' - 350 - 4P and the market supply including taxes) is 04-130 (both in millions), where Pis the monthly price of telecommunication services. The senator is considering tax reform that would dramatically ent tax rates, leading to a supply function under the new tax policy of 43 -130, How much money per unit would a typical consumer save each month as a result of the proposed legislatiou? LOL03)

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