Which of the following are true about tax? Pick ALL that are correct. Deadweight loss tends to be large when taxes are small. Deadweight loss is zero when demand is perfectly inelastic and supply elasticity equals 1. Deadweight loss is zero when supply is perfectly elastic and demand elasticity equals 1. The more elastic side of the market bears relatively less burden of tax

Which of the following are true about tax? Pick ALL that are correct. Deadweight loss tends to be large when taxes are small. Deadweight loss is zero when demand is perfectly inelastic and supply elasticity equals 1. Deadweight loss is zero when supply is perfectly elastic and demand elasticity equals 1. The more elastic side of the market bears relatively less burden of tax

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 6CQQ

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Which of the following statements about the relationship between elasticity and tax incidence are true ? Choose one or more: A.The incidence of a tax depends on who the tax is placed on. B.When demand is more inelastic than supply, consumers bear more of the incidence of a tax. C.A tax on a good for which both demand and supply are relatively inelastic will cause a relatively large transfer of welfare from consumers and producers to the government. D.When demand is more inelastic than supply, producers bear more of the incidence of a tax. E.If a tax is imposed on a good with a perfectly inelastic demand, then consumers bear the full incidence of the tax.
Which of the following statements about the relationship between elasticity and tax incidence are true ?Choose one or more: A.The incidence of a tax depends on who the tax is placed on. B.When demand is more inelastic than supply, consumers bear more of the incidence of a tax. C.A tax on a good for which both demand and supply are relatively inelastic will cause a relatively large transfer of welfare from consumers and producers to the government. D.When demand is more inelastic than supply, producers bear more of the incidence of a tax. E.If a tax is imposed on a good with a perfectly inelastic demand, then consumers bear the full incidence of the tax. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Assume that the demand for coal is more elastic than the supply. A tax on coal will a. increase the price of coal paid by buyers, and sellers bear a smaller burden of the tax b. decrease the price of coal that sellers really get, and sellers have to bear a bigger burden of the tax c. decrease the price of coal paid by buyers, and buyers have to bear a bigger burden of the tax d. increase the price of coal that sellers really get, and buyers bear a smaller burden of the tax
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