Suppose the government applies a specific tax to a good where the demand elasticity, e, is -0.8, and the supply elasticity, 17, is 0.9. This good would be an ideal good for the government to tax since demand is OA. inelastic and would not raise much revenue. O B. inelastic and would raise much revenue. OC. elastic and would raise much revenue. O D. elastic and would not raise much revenue. The tax incidence on consumers is percent (enter your response as a percent rounded to one decimal place).

Suppose the government applies a specific tax to a good where the demand elasticity, e, is -0.8, and the supply elasticity, 17, is 0.9. This good would be an ideal good for the government to tax since demand is OA. inelastic and would not raise much revenue. O B. inelastic and would raise much revenue. OC. elastic and would raise much revenue. O D. elastic and would not raise much revenue. The tax incidence on consumers is percent (enter your response as a percent rounded to one decimal place).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 20 Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is tripled, the O base of the triangle that represents the deadweight loss triples. O height of the triangle that represents the deadweight loss triples. O All of the above are correct. O deadweight loss of the tax increases by a factor of nine.
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Imagine there is a tax on cigarettes and that consumers and producers each bear some portion of the tax. Assume that when vape pens were introduced, they were not taxed. How would you expect that introduction of vape pens to affect the distribution of the tax burden associated with the cigarette tax? O It will decrease the consumer tax burden because demand for cigarettes will become more elastic. O It will increase the consumer tax burden because demand for cigarettes will become more elastic. O It will decrease the consumer tax burden because demand for cigarettes will become more inelastic. O It will increase the consumer tax burden because demand for cigarettes will become more inelastic.
Suppliers with a high supply elasticity will bear a ________ tax incidence, while suppliers with a low supply elasticity will bear a ________ tax incidence. A. lower; higher B. higher; lower C. lower or no; higher or full D. A and C E. None of the above.
Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $5. Suppose further that the price elasticity of demand for sofas is 1.8 and the price elasticity of supply for them is 1.6. It can be concluded with certainty that the amount of the excise tax was Select one: OA less than $5. B. $5. OC. greater than $5 but less than $10. OD. $10. OE. greater than $10.
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Price (dollars per hour) Select one: O A. perfectly inelastic. OB. elastic. OC. inelastic. OD. unit elastic. O E. perfectly elastic. 7.00 6.60 6.00 5.60 5.00 0 1 2 3 4 5 S + tax 6 7 8 Quantity (thousands of frisbees) Figure 6.3.1 Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed. At a quantity of 4,500 frisbees, supply is
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
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Was able to get the first two, but having trouble figure out the answers to one decimal place on the following: