If supply is relatively inelastic when compared with demand in a perfectly competitive market, consumers will share a larger burden of an excise tax than producers. the incidence of the tax cannot be determined without more information consumers and producers will share the burden of an excise tax equally producers will share a larger burden of an excise tax than consumers

Demand is negatively sloped. Supply is perfectly elastic. Putting an excise tax on sellers will cause the market price paid by buyers to the sellers to increase. True False

In the market for candy, researchers have estimated the following demand and supply curves.  Demand: P= 8 - Q/100 Supply:    P=  (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is tax revenue out of this tax? (Remember that the tax does not change the demand and supply curves).

Consider the supply and demand functions graphed below. Price 100 75 70 60 10 56 Supply Demand 20 Quantity Suppose a demand-side tax is imposed. As a result of the tax, the new equilibrium quantity is 5. What is the price paid by consumers? $60 What is the price received by producers? $ How much is the tax that was imposed? How much tax revenue is collected? Which side of the market pays more of the tax? This side of the market pays more of the tax because SA A 4 4) (