substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic...
If a tax is imposed on a good where both supply and demand are somewhat elastic, but demand is more elastic than supply, the burden of the tax will be borne a. by producers alone. b. by consumers and producers equally. c. by consumers alone. d. mostly by producers but partially by consumers. e. mostly by consumers but partially by producers.
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.
1. An excise tax (sales tax) is imposed on producers of a good. For a given supply curve, the more price elastic the demand for the product, the greater the tax incidence on (the party that pays more portion of tax): Producers Both Consumers Neither
If the demand for a good is highly elastic, then imposing an excise tax on that good will A. mostly burden consumers. B. result in a large increase in quantity C. mostly burden producers D. lead to a minor decrease in price.
If the demand for a good is highly elastic, then imposing an excise tax on that good will a. lead to a minor decrease in price. b. result in a large increase in quantity. c. mostly burden producers. d. mostly burden consumers.
Question 5 1 pts Assuming that a $500 excise tax is imposed in a market. The consumer share of the actual tax incidence turns out to be $100, while the producers' share of the tax burden turns out to be $400. O This implies that supply is relatively more elastic than demand This implies that demand is relatively more elastic than supply O Tax Burden and elasticity are unrelated concepts.
If the demand for a good is perfectly elastic, then a tax on the good will be paid O A. completely by the buyers. OB. completely by the sellers. O C. equally by the buyers and sellers. OD. mostly but not completely by the buyers. O E. mostly but not completely by the sellers.
Question 23 1 pts If demand is perfectly inelastic and supply is relatively elastic, the burden of an excise tax: falls primarily on producers. is shared evenly by consumers and producers. falls entirely on producers. falls entirely on consumers. • Previous Next →
The graph below shows a hypothetical market for salt. Suppose that an excise or commodity tax is levied on consumers in an attempt to curb blood pressure problems. Show the effect of the tax by shifting the appropriate curve(s). Who has the larger tax burden? Producers (suppliers) Consumers (buyers) The tax burdens are equal Why is the tax burden as you described in in the question above? Supply is less elastic than demand. Demand is more elastic than supply. Both...
The demand curve for gasoline is given by P= 18 -0.01Q where Q is a gallon of gasoline. A per-unit tax of $2 is imposed on the consumers. After paying the tax, their remaining marginal willingness to pay is represented by [Select] The new price that sellers receive is (Select] compared to the original market price of gasoline, and the new price that consumers pay (with the tax) is [Select ] compared the original market price of gasoline. If the...