Given that QD = 10000 –4p, Qs = -400 + p, please find: a. Consumer surplus and producer surplus at equilibrium. b. The tax incidence and DWL of a $10 tax using algebra. c. Confirm the tax incidence using elasticitie

If the demand for automobiles is price elastic and an excise tax is levied on sellers of automobiles that causes a 10% increase in the price of automobiles paid by buyers, then: The quantity demanded of automobiles will decrease by more than 10% and buyers will bear a proportionally larger share of the direct burden of the tax than sellers. The quantity demanded of automobiles will decrease by more than 10% and sellers will bear a proportionally larger share of the direct burden of the tax than buyers. The quantity demanded of automobiles will decrease by less than10% and total revenues from auto sales will increase. The quantity demanded of automobiles will decrease by less than 10% and total revenues from auto sales will decrease.

Government is known to utilize a product's elasticity measures to set taxes and subsidies. Use this information to set policy on one of the following products: tobacco products, petroleum products, agriculture products, or medical products according to your goal. Research the government's tax/subsidy policy in these areas and any objectives of the tax policy. State your goal, your prescribed action, and why you believe it will work using the information you found.

If the burden of a tax on sugary drinks is borne mostly by consumers, it must be the case that: a)  The demand for sugary drinks is much less elastic than their supply. b)  Both the demand for, and the supply of, sugary drinks is inelastic. c)  Both the demand for, and the supply of, sugary drinks is elastic. d)  The demand for sugary drinks is much more elastic than their supply.