the demand for a product is inelastic but the supply is elastic, the ________ will bear the tax incidence.

None

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

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

Problem 6-9 Demand change effects on government revenue The market for Titanium has supply given by P = Q and demand given by P = 12 - Q. The government introduces a tax of €3/g. Yet, the market experiences growth in the demand for titanium because of new-found medical uses. The new demand curve is P= 13 - Q. Find the change in government tax revenue due to the increased demand for titanium. (Round your answer to one decimal place.) € million

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

a)Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply. b)Consider supply in the long run. Assume that a specific tax is imposed on a good that was    previously untaxed. How will the incidence of this tax change as time passes?