If the supply curve is perfectly elastic, then this suggests that the O A. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good. OC. entire burden of the excise tax is borne by the sellers. OD. sellers absorb a portion of the excise tax OE. entire burden of the excise tax is borne by the consumers.

If the supply curve is perfectly elastic, then this suggests that the O A. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good. OC. entire burden of the excise tax is borne by the sellers. OD. sellers absorb a portion of the excise tax OE. entire burden of the excise tax is borne by the consumers.

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

8. A Tax on Sellers (ID: 075.06 MANK09) Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift Oa. demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. Ob. supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. Oc. demand, raising both the equilibrium price and quantity in the market for artificially sweetened beverages. Od. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.
120 110 100 C. Supply 90 80 70 60 50 40 30 20 10 Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Refer to Figure E. The amount of deadweight loss as a result of the tax is O a. $600. b.$400. c. $250. O d. $50. PRICE
The government imposes a $3 per-can tax on cans of Twip. Consumers will most likely see the prices they pay: O rise more than $3. O fall by $3. O rise, but by less than $3. rise by $3.
Help
Q : 35 Please help
When a tax is levied on a good, what happens to the market price and why? Select one: O a The market price rises because both quantity demanded and quantity cross out supplied falls. O b. The market price falls because quantity supplied falls. cross out O. The market price falls because quantity demanded falls. cross out O d. The market price rises because both quantity demanded and quantity cross out supplied rises.
Suppose the federal govemment requires beer drink·ers 10 pay a $2 tax on each case of beer purchased. (Infact, both the federal and state governments imposebeer taxes of some sort.}a . Draw a supply-and-demand diagram of the mar·kct for beer without the tax. Show the price paidby consumers, the price n..~cived by producers*and the quantity of beer sold. What is the differ>encc between t~ price paid by consumers and theprice received by producers?b. Now draw a suppl)'•and--dem.and diagram fort~beer market with t~ tax. Show the price paid byconsumers, the price received by producers, andthe quantity olbec.r sold. What is the differencebetween the price paid by consumers and theprice received by producers? Has the quantity olbeer sold incrca.<;ed or decreased?
Eggs have a supply curve that is linear andupward-sloping and a demand curve that is linearand downward-sloping. If a 2 cent per egg tax isincreased to 3 cents, the deadweight loss of the taxa. increases by less than 50 percent and may evendecline.b. increases by exactly 50 percent.c. increases by more than 50 percent.d. The answer depends on whether supply ordemand is more elastic.
Suppose the market for a product is given by the following S+D functions. price 100 80 60 40 20 20 Demand 40 60 80 100 120 140 How much DWL does a $10 tax create? O a. zero Ob. 200 O c. 600 O d. 400 Supply
California has higher income taxes than any other state in the United States. As a result, many business owners, like Elon Musk and Joe Rogan, have moved their enterprises to states with lower state income taxes. As a result, its likely that California will start to experience less tax revenue even as they increase tax rates. What concept in economics does this best illustrate? O The Law of Demand O Subsidies O Price Floors O The Laffer Curve
The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that shows the excess burden of the tax on basketballs. The excess burden of the tax on basketballs is $ million. The supply of basketballs is more pays most of the tax. A. elastic; seller OB. elastic; buyer OC. inelastic; buyer O D. elastic; seller than the demand for basketballs, and the
P' P" P" Price J K L M N BO Demand Quantity Suppose the government imposes a tax of P-P. The area given by I + Y represents... a. deadweight loss of taxation b. government revenue Supply c. consumer surplus after tax d. total surplus after tax