Question The government is trying to decide whether to impose a $0.35 tax on the firms or the consumers of a given market. Choose the correct statement about the post-tax market outcomes for these two scenarios. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. The market outcome in each scenario will be different since the tax is being imposed on different groups (firms versus consumers). One cannot determine how the outcomes will differ given the limited information provided. a b The post-tax equilibrium outcomes will be the same in both scenarios.
Question The government is trying to decide whether to impose a $0.35 tax on the firms or the consumers of a given market. Choose the correct statement about the post-tax market outcomes for these two scenarios. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. The market outcome in each scenario will be different since the tax is being imposed on different groups (firms versus consumers). One cannot determine how the outcomes will differ given the limited information provided. a b The post-tax equilibrium outcomes will be the same in both scenarios.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The government is trying to decide whether to impose a $0.35 tax on the firms or the consumers of a given market. Choose the
correct statement about the post-tax market outcomes for these two scenarios.
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
The market outcome in each scenario will be different since the tax is being imposed on different groups (firms versus
consumers). One cannot determine how the outcomes will differ given the limited information provided.
a
The post-tax equilibrium outcomes will be the same in both scenarios.
The post tax equilibrium quantity will be higher in the scenario in which the producer is taxed.
The post-tax equilibrium quantity will be higher in the scenario in which the consumer is taxed.
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