"A"
A tax imposed on the good will increase the price that is paid by the buyer and decrease the price paid by the seller in the market.
ts) Suppose a tax is imposed on a good. This will A. increase the price paid by the buyer and decrease the price receiv...
Refer to Figure 8-6. If the tax is imposed on the buyer, what price would the buyers pay for the good?
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
A tax increase can be shared by the buyer and the seller of a good. a.true b.false The pricing of products in the oligopoly market is unlike the pricing in the monopolistically competitive market. a.true b.false Markets allow people to exchange goods and services. a.true b.false There is only one theory that explains oligopoly. a.true b.false The monopolist’s two major constraints are related to ________ and _________. a. profit; loss b. cost; demand c. number; closeness of substitutes d. price;...
Suppose a $3 per-unit tax is imposed on the sellers of this
good.
1) What is the effective price that sellers will receive for the
good after the tax is imposed?
2) What price will buyers pay for the good after the tax is
imposed?
3)How much is the burden of this tax on the buyers/sellers in
this market?
How do you calculate it? Please explain.
Price 20 18 16 14 12 10 8 6 4 D 10 12 14...
Question 15 (2.5 points) A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the A) tax is actually shifted entirely onto the buyer who can afford only a smaller supply. B) tax is paid by the seller to the government and is, therefore, like a cost of production. OC) higher price causes entry into the market. OD) tax shifts the demand curve leftward.
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
If a $2 tax per bottle of wine is imposed on wine producers, which of the following will occur? a. The price of wine will increase, fewer bottles will be purchased, and there will be a deadweight loss from this tax. b. The price of wine and quantity sold will be unchanged. c. The price of wine will decrease, more bottles will be purchased, and there will be a deadweight loss from this tax. d. The price of wine will...
Suppose a $4 per-unit tax is imposed on the sellers of this
good. How many units of this good will be sold after the tax is
imposed?
Price 20 18 S 16 14 12 10 8 6 4 D 2 2 4 6 8 8 10 12 14 16 Guextity
QUESTION #1 Refer to Figure 1. Suppose a $3 per-unit tax is
imposed on the sellers of this good. How much is the burden of this
tax on the buyers in this market? What price will buyers pay for
the good after the tax is imposed? Explain clearly.QUESTION #2 Refer to Figure 1. Suppose a $3 per-unit tax is
imposed on the sellers of this good. How much is the burden of this
tax on the sellers in this market? What is...
Suppose the government decides to eliminate a binding price floor that it had previously imposed on a particular good. It can be expected that o o -16: A. the price would decrease, the quantity demanded would increase and the quantity supplied would decrease. B. the price would increase, the quantity demanded would decrease and the quantity supplied would increase. C. the price would increase, the quantity demanded would increase and the quantity supplied would decrease. D. the price would decrease,...