6. Which of the following best describes the effects of a per unit purchased tax on producers when the demand curve and the supply curve are both neither perfectly elastic nor perfectly inelastic? a) Price to consumers increases; price received by producers increases; quantity bought and sold increases b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases
6. Which of the following best describes the effects of a per unit purchased tax on producers when the demand curve and the supply curve are both neither perfectly elastic nor perfectly inelastic? a) Price to consumers increases; price received by producers increases; quantity bought and sold increases b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 10PA
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Question
![6. Which of the following best describes the effects of a per unit purchased tax on producers when the demand curve
and the supply curve are both neither perfectly elastic nor perfectly inelastic?
a) Price to consumers increases; price received by producers increases; quantity bought and sold increases
b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases
c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases
d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases
7. Which of the following best describes the effects of a per unit purchased subsidy to producers when the demand
curve and the supply curve are both neither perfectly elastic nor perfectly inelastic?
a) Price to consumers increases; price received by producers increases; quantity bought and sold increases
b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases
c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases
d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases
8. Which of the following best describes the effects of a $1 per unit purchased tax on producers when the demand curve
is perfectly inelastic and the supply curve is neither perfectly elastic nor perfectly inelastic?
a) Price to consumers increases by $1
b) Price to consumers increases by less $1
c) Price to consumers stays the same
d) Price to consumers decreases by $1
9. Which of the following best describes the effects on the price that consumers pay when considering a $1 per unit tax
on consumers versus a $1 per unit tax on producers?
a) The price that consumers pay is higher with a tax on consumers
b) The price that consumers pay is higher with a tax on producers
c) The price that consumers pay is the same
d) Which tax leads to a higher price is uncertain
For question 10, please use the following information for the demand curve and supply curve:
QD=1000-2P QS =-200+P
10. What is the quantity bought and sold if the government implements a tax of $30/unit?
a) 150 b) 180 c) 200 d) 400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5eeb5746-10af-4b18-9ed1-ca0de8c64710%2F611f989c-e6ab-424f-80a0-e2476f1df294%2Fwvwkh7l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Which of the following best describes the effects of a per unit purchased tax on producers when the demand curve
and the supply curve are both neither perfectly elastic nor perfectly inelastic?
a) Price to consumers increases; price received by producers increases; quantity bought and sold increases
b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases
c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases
d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases
7. Which of the following best describes the effects of a per unit purchased subsidy to producers when the demand
curve and the supply curve are both neither perfectly elastic nor perfectly inelastic?
a) Price to consumers increases; price received by producers increases; quantity bought and sold increases
b) Price to consumers increases; price received by producers decreases; quantity bought and sold increases
c) Price to consumers decreases; price received by producers increases; quantity bought and sold increases
d) Price to consumers increases; price received by producers decreases; quantity bought and sold decreases
8. Which of the following best describes the effects of a $1 per unit purchased tax on producers when the demand curve
is perfectly inelastic and the supply curve is neither perfectly elastic nor perfectly inelastic?
a) Price to consumers increases by $1
b) Price to consumers increases by less $1
c) Price to consumers stays the same
d) Price to consumers decreases by $1
9. Which of the following best describes the effects on the price that consumers pay when considering a $1 per unit tax
on consumers versus a $1 per unit tax on producers?
a) The price that consumers pay is higher with a tax on consumers
b) The price that consumers pay is higher with a tax on producers
c) The price that consumers pay is the same
d) Which tax leads to a higher price is uncertain
For question 10, please use the following information for the demand curve and supply curve:
QD=1000-2P QS =-200+P
10. What is the quantity bought and sold if the government implements a tax of $30/unit?
a) 150 b) 180 c) 200 d) 400
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