Homework Answers
5.Ans: supply is more elastic than demand.
Explanation:
When demand is inelastic and supply is elastic then the burden of tax is more on buyers than the sellers. But when demand is elastic and supply is inelastic then the burden of tax is more on sellers than the buyers.So we can conclude that buyers of a product will pay the majority of a tax placed on a product when supply is more elastic than demand.
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Incorrect Question 5 0/1 pts Buyers of a product will pay the majority of a tax...
Chap.6 Please show that when imposing A Tax on Buyers: Perfectly inelastic demand: Buyers pay the...
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.
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...
How much will the buyer pay for the product after the tax is imposed? How much will the seller receive after the tax i...
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
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.
Question 18 (1 point) When a tax is placed on the sellers of a product, buyers...
Question 18 (1 point) When a tax is placed on the sellers of a product, buyers pay O a) less, and sellers receive less than they did before the tax. Ob) more, and sellers receive more than they did before the tax. Oc) less, and sellers receive more than they did before the tax. d) more, and sellers receive less than they did before the tax. Question 19 (1 point) If the price elasticity of demand for a good is...
→ XCIO Question 20 1 pts A monopolist's demand curve is the industry demand curve. of...
→ XCIO Question 20 1 pts A monopolist's demand curve is the industry demand curve. of unit elasticity throughout. perfectly inelastic perfectly elastic Question 21 1 pts In perfectly competitive markets the price. every buyer is large enough to influence no buyer or seller is large enough to influence every seller is large enough to influence both buyers and sellers are large enough to influence
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for...
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for wine in the United States. The orange (upward-sloping) line represents the supply curve of wine, and the blue (downward-sloping) line represents the market demand. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. The market is initially in equilibrium. Then the government institutes a $11.60 per bottle tax...
Figure 1. Price $ Supply (after tax) Supply (before tax) Demand 75 100 Quantity of Cigarettes 12. In Figure 1, the...
Figure 1. Price $ Supply (after tax) Supply (before tax) Demand 75 100 Quantity of Cigarettes 12. In Figure 1, the tax is being levied to the a. Third party b. Buyer c. Government d. None of the above curve is unchanged. 13. The curve shifts to the left after tax but a. Demand; supply b. Supply; demand c. Supply, supply d. Demand; demand 14. The amount of tax is a. $1 b. $3 c. $2 d. $4 15. The...
This Test: 60 pts possil This Question: 1 pt 42 of 60 (39 complete) Price (dollars...
This Test: 60 pts possil This Question: 1 pt 42 of 60 (39 complete) Price (dollars per dose) The graph shows the market for a vital-to-life drug on which the government has imposed a tax of $2 per dose The buyer pays the entire tax. Draw the demand curve for this drug. Label it D The more_ O A. inelastic, the more equally is the tax split between the buyer and the seller O B. elastic, the larger is the...
0/0.1 pts Incorrect Question 62 If a small increase in the price of a good reduces...
0/0.1 pts Incorrect Question 62 If a small increase in the price of a good reduces quantity demanded to zero, demand is and the price elasticity of demand is equal to perfectly inelastic; zero perfectly elastio, iufiaty unit elastic, one perfectly elastic zero 0.1/0.1 pts Question 63 Question 73 Incorrect 0/0.1 pts If Smith will give up three units of Y to get one additional unit of X, then he has transitive preferences/ his budget constraint is upward slopimg. his...
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...
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
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.
Question 18 (1 point) When a tax is placed on the sellers of a product, buyers pay O a) less, and sellers receive less than they did before the tax. Ob) more, and sellers receive more than they did before the tax. Oc) less, and sellers receive more than they did before the tax. d) more, and sellers receive less than they did before the tax. Question 19 (1 point) If the price elasticity of demand for a good is...
→ XCIO Question 20 1 pts A monopolist's demand curve is the industry demand curve. of unit elasticity throughout. perfectly inelastic perfectly elastic Question 21 1 pts In perfectly competitive markets the price. every buyer is large enough to influence no buyer or seller is large enough to influence every seller is large enough to influence both buyers and sellers are large enough to influence
7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for wine in the United States. The orange (upward-sloping) line represents the supply curve of wine, and the blue (downward-sloping) line represents the market demand. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. The market is initially in equilibrium. Then the government institutes a $11.60 per bottle tax...
Figure 1. Price $ Supply (after tax) Supply (before tax) Demand 75 100 Quantity of Cigarettes 12. In Figure 1, the tax is being levied to the a. Third party b. Buyer c. Government d. None of the above curve is unchanged. 13. The curve shifts to the left after tax but a. Demand; supply b. Supply; demand c. Supply, supply d. Demand; demand 14. The amount of tax is a. $1 b. $3 c. $2 d. $4 15. The...
This Test: 60 pts possil This Question: 1 pt 42 of 60 (39 complete) Price (dollars per dose) The graph shows the market for a vital-to-life drug on which the government has imposed a tax of $2 per dose The buyer pays the entire tax. Draw the demand curve for this drug. Label it D The more_ O A. inelastic, the more equally is the tax split between the buyer and the seller O B. elastic, the larger is the...
0/0.1 pts Incorrect Question 62 If a small increase in the price of a good reduces quantity demanded to zero, demand is and the price elasticity of demand is equal to perfectly inelastic; zero perfectly elastio, iufiaty unit elastic, one perfectly elastic zero 0.1/0.1 pts Question 63 Question 73 Incorrect 0/0.1 pts If Smith will give up three units of Y to get one additional unit of X, then he has transitive preferences/ his budget constraint is upward slopimg. his...
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