identify and explain what happens when a tax is imposed on the buyer
What happens to the gains from trade when a tax is imposed? Choose an industry in which you work or with which you are familiar. How would a tax affect sales, supplier revenue, and consumer buying power in that industry?
2) A. Graphically illustrate a per unit tax imposed on the seller of a product. Identify the welfare loss and the portion of the tax paid by the buyer and the seller. B. Explain how the elasticities of demand and supply affect the portion of the tax shifted onto the buyer and sellers respectively
Refer to Figure 8-6. If the tax is imposed on the buyer, what price would the buyers pay for the good?
Explain when state sales tax is imposed for online transactions.
How much will the buyer pay for the product after the tax is imposed? How much will the seller receive after the tax is imposed? As a result of the tax, what has happened to the level of output? Calculate the economic welfare after government imposes a tax of $5 per unit on buyers. Total Surplus Government Revenue DWL Producer Surplus Supply Demand 10 20 30 40 50 60 70 80 Quantity
ts) Suppose a tax is imposed on a good. This will A. increase the price paid by the buyer and decrease the price received by the seller B. increase the price paid by the buyer but leave the price received by the seller unchanged C. decrease the price received by the seller but leave the price received by the buyer unchanged D. increase the price received by the seller and decrease the price paid by the buyer
(1) Briefly explain why deadweight loss exist when a tax is imposed. Why would deadweight loss be lower if the tax is imposed on a good with inelastic demand? [3 Points)
Explain what happens to an individual supply curve of labor when: 1- a lump sum tax is applied 2- a % wage increase in tax is applied 3- a person has non-wage income *use graphs as much as possible
3. What happens when an excise tax is paid mainly by consumers? 4. Describe what happens when an excise tax is paid mainly by producers?
When a tax is imposed on the sale of a good, the seller will raise the price of the good by the amount of the tax, and the tax will be paid entirely by the consumer. True False