A tax on demand shifts ________________ , and the burden of the tax falls on _______________.    Question 3 options:   the demand curve only;  on demanders only.    both demand and supply curves; on both suppliers and demanders.   the supply curve only; on both suppliers and demanders.   the demand curve only; on both suppliers and demanders.

Q: A Tax of $5.00 is levied on the buyer of the item below. P 10 7.5 5 2.5 --- Supply Demand 200 400…

A: Tax is a kind of mandatory payment that has a main characteristic of "no quid pro quo". It is…

Q: xplain how changing the price elasticity of demand from elastic to inelastic affects the consumer's…

A: The percentage change in quantity demanded divided by the percentage change in price is the price…

Q: Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be…

A: When demand is more elastic than the supply than in this situation suppliers bear the more burden of…

Q: Explain how tax size and elasticity of demand/supply affect the size of tax revenue and social…

A: Elasticity of demand: It the measurement  of the percentage change in the quantity demanded of a…

Q: Figure 8-1 P¹ P" P" Price J K L M N 54 B Supply Demand Refer to Figure 8-1. Suppose the government…

A: Tax is a mandatory payment to the government. The tax amount is spent on the economy through public…

Q: a tax is levied on the seller of a product, what will happen to the demand curve and the supply…

A: Equilibrium occurs when demand and supply forces are equal. The imposition of taxes leads to…

Q: 3. Relationship between tax revenues, deadweight loss, and demand elasticity The government is…

A: Tax Revenue: Tax revenue refers to the total amount of money collected by the government through…

Q: A perfectly competitive market with market supply Qs = -2 + P and market demand Qd = 40 - P/2. The…

A: Demand shows the relation between P and Q that consumers are willing to buy, assuming all other…

Q: In a market where the government has imposed a tax on goods, where does tax revenue fall? Explain…

A: The tax on any commodity will lessen the price realized by the sellers and raise the price paid by…

Q: Seeing a golden opportunity to increase its revenue, assume the City of Boston has decided to levy a…

A: When a tax is imposed on every unit of quantity sold, then the tax burden is shared by the seller…

Q: The government has imposed an indirect tax on good A and the coefficient of the price elasticity of…

A: Elasticity of demand is a concept in economics that measures how sensitive the quantity demanded of…

Q: Compared to consumers, producers will lose the greater amount of surplus from a tax if supply is…

A: The correct Option is (A) That is the supply is more elastic than the demand

Q: Consider a market with an equilibrium quantity of 100 and an equilibrium price of $40. Suppose the…

A: In the market, equilibrium occurs at the intersection point of market demand and market supply…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: QD= 240-5P ........... demand function Qs = P     ............. supply function

Q: QUESTION 10 Governor Kathy Hochul does not like rabbits. She has decided to institute a $50 tax on…

A: Given: Supply: P=9+0.4Q Demand: P=75-0.4Q

Q: draw a graph with the demand curve, supply curve, equilibrium price/quantity, tax price, tax…

A: Originally , the equilibrium is at point e with equilibrium price p and equilibrium quantity q.…

Q: Which of the following statements are correct? The statutory or legal incidence of a tax determines…

A: The tax can be divided into two categories such as per unit tax and lumpsum tax. Any tax results in…

Q: Suppose that the government has decided to place a $2 per litre tax on soft drinks. In this market,…

A: The economics as a study is based upon the idea and decision making where the resources are to be…

Q: **Elasticity and tax incidence: How does elasticity affect the incidence (burden) of a tax on goods…

A: Elasticity is a measurement of a variable's receptivity to changes in another variable. The…

Q: Eighth Assignment Find and graph the Post Tax Consumer Surplus, Producer Surplus, Tax Revenue, and…

A: Deadweight loss, also known as excess burden or allocative inefficiency, is an economic concept that…

Q: 1) A tax on sellers shifts the A) Supply; left B) Supply; right C) Demand; left D) Demand; right…

A: Incidence of tax: Incidence of tax implies the division of tax burden among the buyers and sellers.…

Q: Question 6 The incidence of indirect taxes on suppliers is greatest when: A) supply…

A: "Indirect tax is a tax imposed on products and services before they reach the buyers, who pays the…

Q: A new tax is imposed in a market with inelastic supply and inelastic demand.  What do we know about…

A: When talking about deadweight loss, it can be said that it is the amount of total output or income…

Q: QUESTION 5 A higher amount of a tax imposed by the government will be paid by the buyers. Always.…

A: When talking about incidence of tax, it can be seen that the tax burden depends upon the price…

Q: Question The government is trying to decide whether to impose a $0.35 tax on the firms or the…

A: Demand curve is a downward sloping curve and supply curve is an upward sloping curve. Equilibrium is…

Q: The incidence of the subsidy on consumers is decimal places) Show the effect of the subsidy…

A: Demand :Demand is when a consumer has the desire to buy something at the price that he is ready to…

Q: With a tax on demand (if demand is downward-sloping as it usually is) , the price that buyers pay…

A: A downward sloping demand curve indicate an inverse relationship between price and quantity, that…

Q: The market demand is Qd=12 - 0.04P The market supply is Qs=3.8P + 4 Supposed each unit is taxed…

A: Given, Market demand: Qd=12 - 0.04P Market supply: Qs=3.8P + 4 Each unit is taxed $0.25.

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: With the introduction of tax there is market failure leading to dead weight loss.

Q: Now suppose that the price elasticity of demand is 1, price elasticity of supply is 2, and a 25 %…

A: Elasticity is defined as the response to a price change in the supply and demand of a product.…

Q: Question 10 The producer’s share of a tax will be larger:   A) the greater the elasticity of…

A: Individuals must pay taxes to the government since they are a legal requirement. Taxes and…

Q: When a tax per unit is placed on the buyer of a good: a the equilibrium price falls and the…

A: The tax could either be imposed on the producer or the buyer. A tax causes both the consumer surplus…

Q: 6.Suppose a $ 60 per unit tax on gasoline is place on the seller and assume that the demand curve…

A: The perfectly inelastic demand is a vertical demand curve, in which the consumer demands same…

Q: When supply is perfectly elastic, who bears the burden of tax? Select one: a. producers b.…

A: The burden of the tax falls on that side of the market (consumer or producer) which is relatively…

Q: 14. 15. Suppose a tax of $4 per unit is imposed on a good. The supply curve and the demand curve are…

A: "As per the policy, we can provide answers to only the first question. Kindly raise the question…

Q: Question 6 In a market with a binding price ceiling, an increase in the ceiling will quantity…

A: 6. Price ceiling: When the government or a group imposes an upper cap or limit on how high the price…

Q: The equilibrium quantity in a market will increase when... The government puts a tax on consumers.…

A: With an increase in tax, the supply curve shifts upwards to S+Tax as production is now expensive.

Q: Figure Suppose that the government imposes a tax of P3 - P1. Answer questions 7 to 11 based on this…

A: Charges or taxes are required by legislatures on their residents to create pay for undertaking…

Q: If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most…

A: Supply and demand both are affected by the imposition of tax. The imposition of tax changes the…

Q: The original equilibrium of a market is at price $20 and quantity 20. If a tax of $10 is imposed and…

A: An excise tax when collected from sellers shifts the supply curve upward by the amount of the tax.…

Q: The figure below shows that the imposition of an indirect tax shifts the supply curve to the left.…

A: Tax Revenue is the revenue earned by the government by the impositional of taxes. TR=t*Q TR=Tax…

Q: A $3 tax on fruits and vegetables would be more effective at increasing tax revenue if the supply of…

A: Taxes are compulsory contributions imposed on individuals or corporations by a government entity,…

Q: 185.Suppose the government wanted to impose a tax and wanted the entire burden of the tax to fall on…

A: here we find the correct option as follow,

Q: ($) Price 90 80 70 60 40 30 20 10 0 $74.00 $16.00 1.0 2.0 3.0 4.0 5.0 6.0 7.0 S+T 8.0 9.0 Quantity…

A: The demand made by a consumer is represented in quantitative terms. Demand is termed for a given…

Q: Suppose the supply is perfectly inelastic, which means the price elasticity of supply is 0. A…

A: As supply is perfectly inelastic , the supply curve is vertical in nature. The imposition of tax…