In the long run, both supply and demand tend to become more elastic. This suggests that, in the long run, the O government will likely reduce tax rates. O deadweight loss from a tax will be less than it is in the short run. O deadweight loss from a tax will be greater than it is in the short run. O deadweight loss from a tax will be zero.

Q: The graph shows the market for luxury boats before and after the 20 percent tax is put on luxury…

A: Since you have specifically asked we are providing only the solution for last two parts of the…

Q: Neither the demand nor the supply of sugar is perfectly elastic or inelastic. If the government…

A: The link between amount the number of a trade goods that producers wish to sell at numerous costs…

Q: c. Compared to the short-run effect of an increase in the excise tax on gasoline, the long-run…

A: The demand tends to be more price elastic in the long run compared to the short run. An item will be…

Q: ssible, it should tax: The good with unit elasticity of demand and unit elasticity of supply The…

A: Businesses eliminate deadweight loss in the long run by changing prices to attract customers. Firms…

Q: Suppose the government places a tax on a product. How does the cost of the tax compare with the…

A: A tax is a necessary fee or financial charge that a government imposes on a person or a business in…

Q: What is the ideal market for a government to impose a tax? × B C D A market with elastic supply and…

A: Demand will be categorized as inelastic when the demand for an item or service remains unchanged…

Q: If the government imposes a tax on a product: O the MC will rise causing the level of output to…

A: The imposition of taxes by the government plays a pivotal role in shaping the economic landscape,…

Q: The folloving graph shovs the daily market for wine vwhen a tax on sellers is set at $0 per bottle.…

A: Quantity Price buyer pays ($) Price sellers receive ($) Before tax 250 25 25…

Q: ». A recent study found that in the long run (defined as more than one year), the price elasticity…

A: The elasticity of demand decides if the rise in the tax would increase revenue or not. The total…

Q: The government places a tax on the purchase ofsocks.a. Illustrate the effect of this tax on…

A: A. Total spending by consumers before tax: OPEQ and after tax OP’E’Q’ ; Total revenue of producers…

Q: Suppose that before tax was imposed 400 million gallons of gasoline was supplied at $3.00 per…

A: Here we are considering the market for gasoline where the equilibrium is determined by demand and…

Q: Imagine there is a tax on cigarettes and that consumers and producers each bear some portion of the…

A: Tax incidence or tax burden reflects who bears the relative burden of a new or existing tax that is…

Q: Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O.…

A: When a government imposed a tax on a product, then how much the burden of the tax falls on buyers…

Q: The figure shows the market for blouses. The government decides to impose the sales tax shown in the…

A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…

Q: The accompanying graph depicts a hypothetical market for salt. Suppose that an excise or commodity…

A: The problem is to look into the effects of a specific excise or commodity, salt tax, on the market…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: a) The burden would be shared more by the group which is less elastic. This is because they cannot…

Q: When the absolute value of price elasticity of demand is greater than the absolute value of price of…

A: The customers will bear a larger fraction of the tax imposed if the demand (dd) is going to remain…

Q: The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays…

A:

Q: Eggs have a supply curve that is linear andupward-sloping and a demand curve that is linearand…

A: Supply: It refers to the goods and services available in the economy to consume goods and services.…

Q: Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 15 million…

A: Tax refers to the compulsory payment that levied by the government on individual income, wealth,…

Q: A convenience store owner in Philadelphia was worried that the implementation of the 1.5 cents per…

A: Price elasticity of demand is a measure of degree of responsiveness of the demand for a good to…

Q: Consider the supply and demand graph above showing a shift in demand from D1 to D2. Which of the…

A: In the given graph, it can be seen that demand curve shifts to the right from D1 to D2.

Q: Suppose Jolene buys apples weekly. If the price of apples were to drop, Jolene would experience in…

A: The quantity of a certain commodity or service that is offered on the market is known as its supply.…

Q: A subsidy is the opposite of a tax. With a €0.50 tax on the buyers of ice cream cornets, the…

A: A subsidy is a benefit being given usually by the government to a business, an individual or an…