5. The burden of a tax on a good is said tofall completely on the producers if the:A) price paid by consumers for the good de-clines by the amount of the tax.B) price paid by consumers for the good in-creases by the amount of the tax.C) price paid by consumers does not change.D) wages received by workers who producethe good increase by the amount of the tax.6. Which of the following is an excise tax?A) a tax of $0.41 per gallon of gasB) a tax of 12.4% of your wagesC) a tax on the value of your propertyD) a one-time local per capita tax of $507.When will buyers of a product pay the ma-jority of a tax placed on a product?A) when supply is more elastic than demandB) when demand is more elastic than supplyC) when the tax is placed on the seller of theproductD) when the tax is placed on the buyer of theproduct8.Suppose that you refill your cat's prescrip-tion every month, buying exactly 30 pills, nomore and no less, regardless of the price. Ifthe government eliminates all taxes on petmedications, who will benefit more?A) Pet owners will receive the entire taxsavings.B) Pet owners and drug companies wouldshare the tax savings.C) Drug companies would receive the entiretax savings.D) Neither pet owners nor drug companieswould see any tax savings.

The burden of a tax on a good is said to fall completely on the producers when the price elasticity…

5. The burden of a tax on a good is said to fall completely on the producers if the: A) price paid by consumers for the good de- clines by the amount of the tax. B) price paid by consumers for the good in- creases by the amount of the tax. C) price paid by consumers does not change. D) wages received by workers who produce the good increase by the amount of the tax.

5. The burden of a tax on a good is said to fall completely on the producers if the: A) price paid by consumers for the good de- clines by the amount of the tax. B) price paid by consumers for the good in- creases by the amount of the tax. C) price paid by consumers does not change. D) wages received by workers who produce the good increase by the amount of the tax.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3 The current price of a good is $25, and 100 units are demanded at that price. The price elasticity of demand for the good is-2. When the price of the good drops by 4 percent to $24, consumer surplus will increase or decrease? By how much?
Question 26 Figure #2 Iprice 10 Dafer 1OR 10 20 30 40 50 70 Refer to Figure #2. After the tax is imposed, what is the effective price that producers receive?
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