QUESTION 3 Figure 1price 10 D 10 20 30 40 50 60 70 80 quantity Refer to Figure. Suppose the government removes the taxes imposed on buyers and impose the same amount of taxes on the sellers of that good. How does this change will impact the tax burden on buyers and sellers? O a. Buyers will now have a larger burden of tax than the sellers. O b. Sellers will now have a larger burden of tax than the buyers. O. The tax burden on buyers and sellers will be the same as it was before the change. O d. Buyers and sellers will share the same burden of taxes. QUESTION 4 Assume that in a market, the equilibrium price is S5 per unit. Further, the government imposes a price floor at $7 per unit. This will cause O a. a binding price floor and will cause a surplus in the market. O b.a binding price floor and will cause a shortage in the market. Oc.a non-binding price floor and will cause a surplus in the market. O d.a non-binding price floor and will cause a shortage in the market.

QUESTION 3 Figure 1price 10 D 10 20 30 40 50 60 70 80 quantity Refer to Figure. Suppose the government removes the taxes imposed on buyers and impose the same amount of taxes on the sellers of that good. How does this change will impact the tax burden on buyers and sellers? O a. Buyers will now have a larger burden of tax than the sellers. O b. Sellers will now have a larger burden of tax than the buyers. O. The tax burden on buyers and sellers will be the same as it was before the change. O d. Buyers and sellers will share the same burden of taxes. QUESTION 4 Assume that in a market, the equilibrium price is S5 per unit. Further, the government imposes a price floor at $7 per unit. This will cause O a. a binding price floor and will cause a surplus in the market. O b.a binding price floor and will cause a shortage in the market. Oc.a non-binding price floor and will cause a surplus in the market. O d.a non-binding price floor and will cause a shortage in the market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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