Homework Answers
49. Consumers can effortlessly change their behavior in response to the tax
Explanation: The incidence of a tax depends on the elasticity. The more elastic side of the market bears a higher burden of the tax. In the case demand is perfectly elastic, consumers bear no tax as they can effortlessly change their consumption pattern for any given change in the price.
50. Demand for the plastic bag is very elastic
Explanation: Since demand is very elastic consumers could shift to other alternatives due to a rise in price because of the tax.
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D Question 49 2 pts Consumers will lose no consumer surplus due to a tax if...
D U-shaped. Question 4 2 pts The maximum amount of tax revenue is generated when the...
D U-shaped. Question 4 2 pts The maximum amount of tax revenue is generated when the good being taxed has a O perfectly inelastic demand. somewhat elastic demand. O perfectly elastic demand. 2 pts Question 49 Consumers will lose no consumer surplus due t
substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic...
substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic supply and demand, the burden of the tax will be borne O by producers alone. y by producers but partially by consumers O mostly by consumers but partially by producers. O by consumers alone. O by consumers and producers equally. D Question 47 2 pts When demand is perfectly elastic, the demand curve is
Question 41 2 pts A tax on apples would cause apple growers to suffer because O...
Question 41 2 pts A tax on apples would cause apple growers to suffer because O producer surplus would incre O the government would collect revenue from the tax. O consumers would pay higher prices. O revenues and profits from growing apples would decrease. O consumer surplus would decrease. Question 42 2 pts Excise taxes are taxes that are.
Question 12 pts When consumers would have been willing to pay higher prices at various quantities...
Question 12 pts When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called consumer surplus. monopoly profits. opportunity cost. deadweight loss. Flag this Question Question 22 pts A demand relationship in which the quantity demanded changes exactly in proportion to the change in price is elastic. unit-elastic. inelastic. consistent with zero elasticity. Flag this Question Question 32 pts A demand relationship in which a given percentage change...
If a $5 tax on each pack of cigarettes causes the market price of cigarettes to...
If a $5 tax on each pack of cigarettes causes the market price of cigarettes to increase by $2.50 then which of the following statements is true? consumers must be more elastic than producers consumers must be less elastic than producers consumers and producers must be equally elastic Question 42 (1 point) If the elasticity of demand is -1.8 and the elasticity of supply is 1, then consumers are than producers and the relative consumer burden will equal . Hint:...
Question 5 1 pts Assuming that a $500 excise tax is imposed in a market. The...
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.
11. The goals of optimal income taxation include all of the following EXCEPT: a. maximizing tax...
11. The goals of optimal income taxation include all of the following EXCEPT: a. maximizing tax revenue. b. minimizing the distortions due to taxation. c. maximizing the nation's social welfare function. d. achieving vertical equity. 12. Suppose that the elasticities of demand for apples, bananas, and peaches are –0.9, –1.6, and –0.8, respectively. Assume that all else is identical in these three products and that an identical tax is levied on each good. Rank the products from highest to lowest...
Please Help Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic...
Please Help
Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic competitor reveals that, at optimal output, the demand curve lies above the average total cost curve. Which of the following is true? O There is economic profit in the long run. Firms will enter the industry in the long run. O There is not enough information because demand is an imperfect benchmark for measuring profitability O There is an economic loss in the long...
9. Draw a tax on soda, assuming relatively elastic demand for soda. Label all the relevant...
9. Draw a tax on soda, assuming relatively elastic demand for soda. Label all the relevant axes, curves, prices (all of them), and quanti- ties as well as the consumer surplus, producer surplus, tax revenue and deadweight loss. Soda 10. Based on your graph, would this tax very effective at reducing the consumption of soda? 11. Suppose this tax is levied on suppliers, meaning they are re- sponsible for paying the government a certain amount for every soda they sell....
Question 23 1 pts If demand is perfectly inelastic and supply is relatively elastic, the burden...
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 →
D U-shaped. Question 4 2 pts The maximum amount of tax revenue is generated when the good being taxed has a O perfectly inelastic demand. somewhat elastic demand. O perfectly elastic demand. 2 pts Question 49 Consumers will lose no consumer surplus due t
substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic supply and demand, the burden of the tax will be borne O by producers alone. y by producers but partially by consumers O mostly by consumers but partially by producers. O by consumers alone. O by consumers and producers equally. D Question 47 2 pts When demand is perfectly elastic, the demand curve is
Question 41 2 pts A tax on apples would cause apple growers to suffer because O producer surplus would incre O the government would collect revenue from the tax. O consumers would pay higher prices. O revenues and profits from growing apples would decrease. O consumer surplus would decrease. Question 42 2 pts Excise taxes are taxes that are.
If a $5 tax on each pack of cigarettes causes the market price of cigarettes to increase by $2.50 then which of the following statements is true? consumers must be more elastic than producers consumers must be less elastic than producers consumers and producers must be equally elastic Question 42 (1 point) If the elasticity of demand is -1.8 and the elasticity of supply is 1, then consumers are than producers and the relative consumer burden will equal . Hint:...
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.
Please Help
Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic competitor reveals that, at optimal output, the demand curve lies above the average total cost curve. Which of the following is true? O There is economic profit in the long run. Firms will enter the industry in the long run. O There is not enough information because demand is an imperfect benchmark for measuring profitability O There is an economic loss in the long...
9. Draw a tax on soda, assuming relatively elastic demand for soda. Label all the relevant axes, curves, prices (all of them), and quanti- ties as well as the consumer surplus, producer surplus, tax revenue and deadweight loss. Soda 10. Based on your graph, would this tax very effective at reducing the consumption of soda? 11. Suppose this tax is levied on suppliers, meaning they are re- sponsible for paying the government a certain amount for every soda they sell....
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 →
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