Which of the following statements about the relationship between elasticity and tax incidence are true ?   Choose one or more:A.   A tax on a good for which both demand and supply are relatively inelastic will cause a relatively large transfer of welfare from consumers and producers to the government.   B.The incidence of a tax depends on who the tax is placed on.   C.If a tax is imposed on a good with a perfectly inelastic demand, then consumers bear the full incidence of the tax.   D.When demand is more inelastic than supply, producers bear more of the incidence of a tax.   E.When demand is more inelastic than supply, consumers bear more of the incidence of a tax

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)..

Can you explain with graphs as well please

Demand for a good is perfectly ELASTIC while supply is regularly shaped. Suppose the government taxes the good. Which of the following statements is true:     A. The tax will create deadweight loss   B. The tax will NOT create deadweight loss

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? $?

Microeconomics Question 1: True or False. Explain. a. When the demand curve of a good shift to the left, it becomes more inelastic at every level of price. b. If the tax burden falls entirely on buyers a good (tax in per unit imposed on seller), the demand of that good should be perfectly elastic. Question 2: Suppose the demand and supply for gasoline are given by =20-2P and Q -4+10 where P is the price in $ per gallon, and quantity is measured in millions of gallons per day a. Find the equilibrium price/quantity for this market b. How much is the price elasticity of demand and price elasticity of supply at this equilibrium? c. Suppose that the state government decides to tax $2/gallons on consumers. Find the new equilibrium prices and the new equilibrium quantity d. What is total tax payment in dollars to the state government? How much is the share of tax paid by consumers e Graph your results