Homework Answers
Answer
Option A
the tax incidence is depend on the elasticities of demand and supply if the demand is more inelastic than supply then buyer bears the tax burden more than the seller and vice verse.
the buyer can not substitute for other market and the seller can change the supply more than the change in demand.
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The buyer pays most of a tax if demand is relatively inelastic because O A. the...
suppose a tax is imposed on a good that has relatively inelastic demand and relatively elastic...
suppose a tax is imposed on a good that has relatively inelastic demand and relatively elastic supply. who will bear more of the burden tax, consumers or producers? Explain.
7. A) o If demand is inelastic, the tax burden falls primarily on the ___ and...
7. A) o If demand is inelastic, the tax burden falls primarily on the ___ and deadwe __and deadweight loss is buyer; large B) buyer, small c) c) seller, la seller, large D) seller, small for a given supply of a product, the the price elasticity of demand, the share of the total tax burden borne by consumers and the the share bome greater; greater; smaller B) greater, smaller, greater smaller; greater, greater D) smaller, smaller, greater 9. A) B)...
at plans to impose gure below shows the market for cigarettes. The government plans to o...
at plans to impose gure below shows the market for cigarettes. The government plans to o answer in this market which will be collected by sellers. Use the rigure to ans Questions 47 and 48 Price per pack 512 Supply 40 70 Demand Quantity of cigarettes (1000s of packs) 47. The amount of the tax paid by buyers is sellers is a $8; $3 b. $3; $2 The amount of the tax paid by c. $5; $2 d. $3; $5...
please answer these. Thank you. 29. When a tax is placed on the buyers of coffee,...
please answer these. Thank you.
29. When a tax is placed on the buyers of coffee, the buyers bear the entire burden of the tax b. sellers bear the entire burden of the tax burden of the tax will be always be equally divided between the buyers and the sellers d. burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal 30. the government wants to reduce...
27). Assume that the demand for salt is relatively inelastic and that the demand for orange juice is relatively el...
27). Assume that the demand for salt is relatively inelastic and that the demand for orange juice is relatively elastic. Imposing a tax on salt will cause total decrease in traded quantity than imposing the same percentage tax on orange juice. a. a greater b. a lesser c. neither a greater nor a lower d. either a greater or a lesser than a 28.) We can expect a tax on gasoline to cause the quantity of gasoline traded to change...
The demand for gasoline in the short run is O inelastic because there are very few...
The demand for gasoline in the short run is O inelastic because there are very few good substitutes for gasoline. O unit elastic because people tend to consume a stable amount of gasoline per period. o elastic because people can easily switch to public transportation. O perfectly inelastic because people have no choice but to buy gasoline.
Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax...
Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax placed on the product in market generate a relatively large or small deadweight loss? Why? Q. 2. If the world price of a good exceeds the domestic price of the good, will the country export or import the good. In this scenario who gain from free trade: Domestic consumers or Domestic producers? Explain.
Question text Suppose that there are three types of markets with different degrees of price elasticity....
Question text Suppose that there are three types of markets with different degrees of price elasticity. In Market 1, the demand curve is perfectly inelastic and the supply curve is relatively steep. In Market 2, the supply curve is relatively flat and the demand curve is relatively steep. In Market 3, the supply curve is relatively steep and the demand curve is relatively flat. Which of the following statements is (are) correct? (x) All of the burden of the tax...
Consider the marginal buyer in a market, the individual who is first to exit the market...
Consider the marginal buyer in a market, the individual who is first to exit the market if the price of the good increases and who is the last and most recent entry to the market when the price of the good fell. What is the value of consumer surplus for the marginal buyer? Why? (3-4 sentences.) Suppose a policymaker wants to impose a tax on a luxury good with the intention that buyers will bear the burden (or incidence) of...
C Relatively elastic Relatively inelastic Unit elastic 26. Which of the following is true of an...
C Relatively elastic Relatively inelastic Unit elastic 26. Which of the following is true of an economy's production possibilities curve? It shows the combinations of any two resources that can be used to produce and efficient leve of b It shows the alternative combinations of goods that can be produced by fully employing scar dIt is bowed in (convex to the origin) because of changing levels of technology output b it shows the alternative combinations of goods that can be...
7. A) o If demand is inelastic, the tax burden falls primarily on the ___ and deadwe __and deadweight loss is buyer; large B) buyer, small c) c) seller, la seller, large D) seller, small for a given supply of a product, the the price elasticity of demand, the share of the total tax burden borne by consumers and the the share bome greater; greater; smaller B) greater, smaller, greater smaller; greater, greater D) smaller, smaller, greater 9. A) B)...
at plans to impose gure below shows the market for cigarettes. The government plans to o answer in this market which will be collected by sellers. Use the rigure to ans Questions 47 and 48 Price per pack 512 Supply 40 70 Demand Quantity of cigarettes (1000s of packs) 47. The amount of the tax paid by buyers is sellers is a $8; $3 b. $3; $2 The amount of the tax paid by c. $5; $2 d. $3; $5...
please answer these. Thank you.
29. When a tax is placed on the buyers of coffee, the buyers bear the entire burden of the tax b. sellers bear the entire burden of the tax burden of the tax will be always be equally divided between the buyers and the sellers d. burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal 30. the government wants to reduce...
27). Assume that the demand for salt is relatively inelastic and that the demand for orange juice is relatively elastic. Imposing a tax on salt will cause total decrease in traded quantity than imposing the same percentage tax on orange juice. a. a greater b. a lesser c. neither a greater nor a lower d. either a greater or a lesser than a 28.) We can expect a tax on gasoline to cause the quantity of gasoline traded to change...
The demand for gasoline in the short run is O inelastic because there are very few good substitutes for gasoline. O unit elastic because people tend to consume a stable amount of gasoline per period. o elastic because people can easily switch to public transportation. O perfectly inelastic because people have no choice but to buy gasoline.
Consider the marginal buyer in a market, the individual who is first to exit the market if the price of the good increases and who is the last and most recent entry to the market when the price of the good fell. What is the value of consumer surplus for the marginal buyer? Why? (3-4 sentences.) Suppose a policymaker wants to impose a tax on a luxury good with the intention that buyers will bear the burden (or incidence) of...
C Relatively elastic Relatively inelastic Unit elastic 26. Which of the following is true of an economy's production possibilities curve? It shows the combinations of any two resources that can be used to produce and efficient leve of b It shows the alternative combinations of goods that can be produced by fully employing scar dIt is bowed in (convex to the origin) because of changing levels of technology output b it shows the alternative combinations of goods that can be...
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