If the demand for a product is inelastic but the supply is elastic, the ________ will bear the tax incidence. Question 43 options: a) the local government b) the producer c) the consumer d) the federal government

The burden of tax on consumers and producers is decided by the elasticity of demand and supply. The…

Answered: the demand for a product is inelastic…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

P = -4Qd +50 P = 40, +10 A tax of 8JD is imposed on every unit sold Answer the question in accordance with the following graph 1. Equilibrium quantity before tax is imposed : a) 5 b) 25 c) 15 E) Otherwise 2. Equilibrium price before tax is imposed : a) 45 b) 55 c) 70 E) Otherwise 3. Equilibrium quantity after tax is imposed : a) 30 b) 25 c) 15 E) Otherwise 4. Equilibrium price after tax is imposed : a) 45 b) 55 c) 70 E) Otherwise 5. Values of dimensions at point A: a) 0,100 b) 0,50 c) 0,120 E) Otherwise 6. Values of dimensions at point B: b) 60,0 a) 30,0 c) 50, 0 E) Otherwise 7. Portion of the tax born by consumer is: a) 30 b) 5 c) 20 E) Otherwise 8. Portion of the tax born by producer is: a) 10 b) 20 c) 30 E) Otherwise 9. The distance FC is : a) 5 b) 10 c) 50 E) Otherwise 10. The slope of the demand function is : b) -2 a) 2 c) 4 E) Otherwise hand written plz d) 10 d) 30 d) 10 d) 100 d) 50,0 d) 0,10 d) 10 d) 25 d) 80 d) -4
The annual demand for liquor in a certain state is given by the following equation: QD=500.000-20.000P where Pis the price per gallon and QD is the quantity of gallons demanded per year. The supply of liquor is given by the equation Qs=30.000P. Now assume that a unit tax of 1$ is levied on the sellers of the commodity (i.e. statutory incidence is on the producers). (e) What is the government's tax revenue? (f) Determine how much of the total tax is actually paid by th (g) Determine how much of this total tax is actually paid by t (h) Compute the social welfare loss(i.e., dead-weight loss) tax.
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.
When the price of demand is high and the price elasticity is low the burden of a tax falls primarily on
Assuming that supply is somewhat elastic, the burden of a per unit tax is borne more by consumers themore elastic is the demand curve.Explain why above statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate.
if the demand curve is very inelastic and the supply curve is very elastic in the market then sellers will bear a greater burdeb of tax inposed on the market even if the tax imposed on buyers.True or false
None
The efficiency loss of imposing an excise tax is due to: a. Paying a higher price per unit. b. Producing and consuming fewer unit
The vertical distance between points A and B represents the original tax. 12+ 11+ 10 9 8 7. 6 Price 2 1 D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit tax from $5.00 to $7.50, then the price paid by buyers would be $10.50, the price received by sellers would be $3, and the quantity sold in the market would be 0.5 units. Deadweight loss would now be a. $1.50 O b. $0.50 c. $4.0 Od. $0.625
Suppose that a tax of $6.00 is imposed on this market, what is the tax revenue?
Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose the government decides to impose tax of $12 per unit on sellers in the market. Determine: Tax revenue _____________.
If a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the suppliers or demanders? a) Demanders b) Suppliers c) Both share the burden equally d) Can't tell from the available information

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS