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.
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Chap.6 Please show that when imposing A Tax on Buyers: Perfectly inelastic demand: Buyers pay the...
25. In Meinenchester the supply of lobster is perfectly inelastic, the demand for lobster is unit elastic. A $5 tax on lobster will be borne; a. Mainly by the sellers b. Mainly by the buyers c. All by the sellers d. All by the buyers
Who bears the tax burden if the demand curve is perfectly elastic? a. Sellers b. Buyers c. Government d. Both sellers and buyers
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.
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.
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.
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...
6. Effect of a tax on buyers and sellers The following graph shows the daily market for shoes. Suppose the government institutes a tax of $11.60 per pair. This places a wedge between the price buyers pay and the price sellers receive. Supply Tax Wedge PRICE (Dollars per pair) Demand 0 100 200 800 900 1000 300 400 500 600 700 QUANTITY (Pairs of shoes) Fill in the following table with the quantity sold, the price buyers pay, and the...
3. When is demand perfectly inelastic? When is demand perfectly elastic? Explain the difference between these two terms. Provide examples.
3doc When demand is perfectly a sales tax will elastic; increase the after-tax price by the amount of the tax. elastic; not change the price of the good. inelastic; increase the after-tax price by less than the amount of the tax. inelastic; decrease the quantity sold.
The graph shows the supply curve of no-name soda. The government has imposed a sales tax of $2 per case on no-name soda. Price (dollars per case) The sellers of no-name soda end up paying the entire tax. @ O3 Draw and label the demand curve for no-name soda. The more the demand, O A. inelastic; the larger is the amount of the tax paid by sellers O B. elastic; the larger is the amount of the tax paid by...