Homework Answers
Q6
Answer
Option B
The tax revenue is higher if the demand and supply both are
inelastic and deadweight loss is less as the consumer and producer
do not change much of the consumption and production with the
effect of the tax.
===
Q7
Answer
Option B
the tax placed on consumer or buyer does not affect the burden of
tax on the consumer and buyer as it is determined by the
elasticities of demand and supply.
The tax on gas production then both producer and consumer are
affected as the burden of tax depend on the elasticities of the
demand and supply
Add Answer to:
QUESTION 6 The deadweight loss associated with a per-unit tax will be small relative to the...
The more inelastic are demand and supply, the greater is the deadweight loss of a tax....
The more inelastic are demand and supply, the greater is the deadweight loss of a tax. True False
The graph below shows a hypothetical market for salt. Suppose that an excise or commodity tax...
The graph below shows a hypothetical market for salt. Suppose that an excise or commodity tax is levied on consumers in an attempt to curb blood pressure problems. Show the effect of the tax by shifting the appropriate curve(s). Who has the larger tax burden? Producers (suppliers) Consumers (buyers) The tax burdens are equal Why is the tax burden as you described in in the question above? Supply is less elastic than demand. Demand is more elastic than supply. Both...
Question 49 (1 point) Deadweight loss will be larger when the demand curve is more inelastic....
Question 49 (1 point) Deadweight loss will be larger when the demand curve is more inelastic. True False Question 50 (1 point) In general, economists believe it is better to tax elastic goods. True False Question 51 (1 point) Saved Governments will raise the most revenue if they tax the more inelastic goods. True False
Please help with answering these question - Which of the following is not true of an...
Please help with answering these question - Which of the following is not true of an excise tax? Excise taxes are much like sales taxes except they only apply to certain purchases. An excise tax will usually cause the price of the product to fall Both consumers and producers usually bear the impact of the excise tax. Excise taxes may be used to discourage certain types of behavior. 1.1 If supply and demand for a product...
Taxing goods with relatively inelastic demand will result in more "deadweight" efficiency loss per dollar of...
Taxing goods with relatively inelastic demand will result in more "deadweight" efficiency loss per dollar of tax revenue than taxing goods with relatively elastic demand. True False
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per...
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true....
The graph below shows the market for office rental space. A $400 per month excise tax...
The graph below shows the market for office rental space. A $400
per month excise tax is imposed on firms selling office space. D is
the demand curve, S1 is the supply curve in the absence of the tax,
and S2 represents the supply curve that includes the tax.
The graph below shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the...
2. A binding price floor A. has no effect B. creates a permanent surplus C. creates a temporary surplus...
2. A binding price floor
A.
has no effect
B.
creates a permanent surplus
C.
creates a temporary surplus
D.
creates a permanent shortage
3. Protection of a new industry until it becomes strong enough
to compete with foreign producers is based on the argument of
A.
infant industries.
B.
government revenue creation.
C.
reciprocity.
D.
creation of a level playing field.
E.
national defense.
4. Economists prefer tariffs to free trade since tariffs do not
have a deadweight loss....
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:...
If we model a tax on the demand side, then the equilibrium price we reach will...
If we model a tax on the demand side, then the equilibrium price we reach will be higher than if we model the tax on suppliers. True False When we model a tax, the new equilibrium price represents the price paid by the buyers the revenue raised from the tax O the price the sellers keep O the amount of the tax Question 39 (1 point) Which of the following is not an appropriate way to model a tax? shifting...
The graph below shows a hypothetical market for salt. Suppose that an excise or commodity tax is levied on consumers in an attempt to curb blood pressure problems. Show the effect of the tax by shifting the appropriate curve(s). Who has the larger tax burden? Producers (suppliers) Consumers (buyers) The tax burdens are equal Why is the tax burden as you described in in the question above? Supply is less elastic than demand. Demand is more elastic than supply. Both...
Question 49 (1 point) Deadweight loss will be larger when the demand curve is more inelastic. True False Question 50 (1 point) In general, economists believe it is better to tax elastic goods. True False Question 51 (1 point) Saved Governments will raise the most revenue if they tax the more inelastic goods. True False
Taxing goods with relatively inelastic demand will result in more "deadweight" efficiency loss per dollar of tax revenue than taxing goods with relatively elastic demand. True False
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true....
The graph below shows the market for office rental space. A $400
per month excise tax is imposed on firms selling office space. D is
the demand curve, S1 is the supply curve in the absence of the tax,
and S2 represents the supply curve that includes the tax.
The graph below shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the...
2. A binding price floor
A.
has no effect
B.
creates a permanent surplus
C.
creates a temporary surplus
D.
creates a permanent shortage
3. Protection of a new industry until it becomes strong enough
to compete with foreign producers is based on the argument of
A.
infant industries.
B.
government revenue creation.
C.
reciprocity.
D.
creation of a level playing field.
E.
national defense.
4. Economists prefer tariffs to free trade since tariffs do not
have a deadweight loss....
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:...
If we model a tax on the demand side, then the equilibrium price we reach will be higher than if we model the tax on suppliers. True False When we model a tax, the new equilibrium price represents the price paid by the buyers the revenue raised from the tax O the price the sellers keep O the amount of the tax Question 39 (1 point) Which of the following is not an appropriate way to model a tax? shifting...
Most questions answered within 3 hours.
-
Assume that in a hydrogen atom, the electron circles the nucleus
in a circle of radius...
asked 9 minutes ago -
Evelyn incorporates her sole proprietorship, transferring it to
newly formed Papaya Corporation. The assets transferred have...
asked 1 minute ago -
A
752 mL sample of water was placed in a 1000 gram pan of aluminum.
The...
asked 2 minutes ago -
1 point) Given the significance level α=0.01 find the following:
(a) left-tailed z value z= (b)...
asked 3 minutes ago -
Calculate the expected value, the variance, and the standard
deviation of the given random variable X....
asked 5 minutes ago -
Describe two obstacles that makes fixing atmospheric nitrogen
difficult.
asked 14 minutes ago -
T
F 53) Most differences
between human groups are the result of biology rather than
culture....
asked 19 minutes ago -
A 5.20 mW helium neon laser emits a visible laser beam with a
wavelength of 633...
asked 22 minutes ago -
Assignment:
Your
organization has made a strategic decision
to
outsourcework
currently performed in house. You have...
asked 20 minutes ago -
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 21 minutes ago -
In preparing its cash flow statement for the year ended December
31, 2018, Green Co. gathered...
asked 23 minutes ago -
Donna is 18 years old and full time accounting student.She is
saving for an overseas holiday...
asked 23 minutes ago