Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be paid by energy suppliers. Assuming demand for gasoline is more inelastic than supply of gasoline.  Will the tax discourage driving?  a. Not at all as the tax burden will be entirely on firms as it is required by law to pay it. b. Driving may decline but possibly only slightly as demand is inelastic. c. Driving will decline considerably regardless of how demand is inelastic. d. Driving may decline by a significant amount particularly if demand is perfectly inelastic.

Doyle and Samphantharak (2008) find that when a 5% gas tax is implemented, prices consumers pay for gas increase by about 4%. What role does demand elasticity play in determining the size of this price change? That is, under what demand elasticity cases would the price change be closer to 5%, or closer to 0%? Illustrate and explain using supply-and-demand graph(s)..

HELP ME WITH PART B PLEASE BY SHOWING IN A DIAGRAM   a. The elasticity of demand for beer in country A is 1.8 and the elasticity ofdemand for beer in country B is 1.7. Suppose that the supply of beer isthe same in both countries and that both countries impose the same levelof tax on beer. Does the consumer in country A share more burden of tax?b. ii. Suppose the demand curve for sugar is Q = 60 − 3P and the supply curveis Q = 2P. Suppose the government announces a per-unit tax of 1 on theprice of sugar. What is the deadweight loss from the tax?

What is an indirect tax give two examples in economics

Studying and not sure how to do these

Suppose the government applies a specific tax to a good where the demand elasticity, E, is -1.4, and the supply elasticity, n, is 1.2. This good would not be an ideal good for the government to tax since demand is: A. inelastic and would raise much revenue B. elastic and would raise much revenue C. inelastic and would not raise much revenue D. elastic and would not raise much revenue what is the tax incidence on consumers? $?

You are Brandon Johnson. The city needs money.  You are contemplating 2 sources of revenue:  levying a tax on gas in Chicago at $.50/ gal, and/or increasing the CTA fare $.25.  The 2 demand schedules are as follows.  Gas price                 Gallons demanded (in millions)                            CTA fare      Number of riders                                                                                                                             (one way)    (in millions)  $4.50                           1                                                                                  $2.00            6   4.00                             1.1                                                                                1.75             8   3.50                              1.2                                                                               1.50             10   3.00                            1.3…

(a) Show the market for housing in equilibrium on a diagram, where demand is less elastic than supply, andlabel the respective consumer and producer surpluses. Discuss whether this market is Pareto efficient. (b) Assume that the State Government imposes a per-unit tax on the sellers of houses. A new diagram,shows the imposition of this tax on the market for housing. Does the imposition of this tax cause a Paretoimprovement to the market, explain? (c) Is the tax imposed in part (b) effective for the collection of Government revenue? Justify your answer withreference to your diagram in part (b).

Refer to Figure 2. Suppose the government imposes a tax of $0.60 per soft drink purchased. When it comes to the economic incidence, who is bearing the tax burden, buyers, or sellers? Explain using actual numbers   .......... 1) Suppose the government introduces a ceiling on the fees that lawyers are permitted to charge. This fee ceiling A) is always inefficient. B) results in an inefficient use of resources when the ceiling is above the equilibrium fee. C) results in an efficient use of resources when the ceiling is above the equilibrium fee. D) results in an efficient use of resources when the ceiling is below the equilibrium fee. E) is always efficient.   2) An effective rent ceiling A) increases producer surplus.                                   B) results in a producer surplus of zero. C) sometimes increases producer surplus and sometimes decreases producer surplus. D) decreases producer surplus.                                   E) decreases the supply of housing.

If the purpose of a tax is to decrease the amount of a harmful activity, then the taxwould be most effective when the supply is ________ and the demand is ________A) elastic; elasticB) inelastic; inelasticC) elastic; inelasticD) inelastic; elastic