Question 3 social cost At a given market price suppose the elasticity of demand is -2.2 and the elasticity of supply is +0.5. Then a tax is imposed on consumers. Which group (consumers or firms) will pay a larger portion of the tax incidence? Explain why. H▾▾ B I X₂ X² Ω· Ξ I

Q)Economics If the tax elasticity of supply is 0.16, by how much will the quantity supplied increase when the marginal tax rate decreases from 40 to 36 percent?

If the tax is imposed on the sellers, shouldn't the 'T' be used alongside the supply 'q' not the demand 'q'? So would it not be q=b(p-T)-a?

Question 22     If the goal is to have the smallest deadweight loss, then a $1 tax should be imposed upon:    a a market with highly elastic demand and highly elastic supply. b a market with highly inelastic demand and highly inelastic supply. c a market with highly elastic demand and unit elastic supply. d a market with unit elastic demand and unit elastic supply.

(a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay? Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers?    Please do not use chat gpt and answer the best way it can be.

The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 26.00 18.00 10.00 Demand Result Per-unit tax B D F 33 U 20 E 36 QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. $ Price consumers pay before tax $ Equilibrium quantity before tax Supply Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Producer surplus after the tax is imposed Consumer surplus after the tax is imposed Tax revenue after the tax is imposed A U B 0 0 с 0 0 D 0 0 E 0 F 0 0

1. The demand for the product S is Q = 500 – 8P and its supply is Q = 200 + 4P. The good is currently untaxed, but the government needs to raise tax by taxing per unit of the good. a. Calculate excess burden for the product S. b. Calculates marginal excess burden for the product S? %3D The exact amount of the tax is not specified.

Can you also show on diagrams please?

Consider the market for BP gasoline. If the market has a very elastic supply and a very inelastic demand, how would the burden of a tax on BP gasoline be shared between producers and consumers? Draw a graph to support your answer.

The demand and supply of ethanol are given by QD = 8,000 – 2,000P and QS = 1,000P – 1,000, where P is price per gallon and Q measures gallons per minute. Suppose the government subsidizes ethanol at $0.30 a gallon that the producer pays. What does the subsidy cost the government? After the subsidy, what is the producer surplus? After the subsidy, what is the consumer surplus? After the subsidy, what is the deadweight loss?