Answer
Option c
The producer will bear the tax as the supply is perfectly inelastic so it will not change after the tax so all the tax will be borne by producer.
25. In Meinenchester the supply of lobster is perfectly inelastic, the demand for lobster is unit...
Chap.6 Please show that when imposing A Tax on Buyers: Perfectly inelastic demand: Buyers pay the entire tax. Perfectly elastic demand: Sellers pay the entire tax. Perfectly inelastic supply: Sellers pay the entire tax. Perfectly elastic supply: Buyers pay the entire tax.
Suppose the supply of a good is perfectly elastic while the demand is elastic. The burden of a tax on the drug will A) be shared by the buyers and sellers. B) fall entirely on the sellers. C) fall entirely on the buyers D) fall on neither the buyers nor the sellers.
Assume that coal demand is elastic, while coal supply is highly inelastic. If a tax of $5.00 per short ton is placed on coal buyers, we would expect that the burden of the tax would fall on Buyers and sellers equally. Buyers more than sellers Sellers more than buyers Not enough information to answer the question.
3. Consider a perfectly inelastic supply curve at q = 1,013, and a perfectly elastic demand curve at p = 101. A subsidy of $5 per unit is given to producers. Using a diagram, explain how the subsidy is shared between consumers and producers. What is the Deadweight Loss? (30%)
Who bears the tax burden if the demand curve is perfectly elastic? a. Sellers b. Buyers c. Government d. Both sellers and buyers
A monopoly has A. A perfectly elastic demand curve B. A perfectly elastic supply curve C. An inelastic demand curve D. less elastic demand curve than a competitive firm
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.
If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity of lobster supplied, then the supply of lobster is O unitarily elastic. unit elastic. elastic. perfectly inelastic
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 →
A few sellers may behave as if they operate in a perfectly competitive market if the market demand is: Select one: a. highly inelastic b. very elastic. c. unitary elastic d. composed of many small buyers.