please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly The more elastic the demand for a good, theO more a sales tax raises the price paid by buyers.O less a sales tax lowers the price paid by buyers.O more a sales tax lowers the price paid by buyers.O less a sales tax raises the price paid by buyers.

The correct answer to this question is d. less a sales tax raises the price paid by buyers.We must…

Answered: The more elastic the demand for a good,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 4DQ

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Similar questions

The good creates a negative externality to producers. The government taxes producers exactly at the size of the external harm created by the externality. Which of the following is true: The tax will result in under provision of the good compared to the optimum The tax will result in over provision of the good compared to the optimum The tax will result in an optimal production of the good
Which of the following is a benefit of selling on credit? Select one: Expenses are reduced by making sales to a wide range of customers. Revenues are increased by making sales to a wider range of customers. Cash is received sooner. Some customers do not pay, creating an expense. Clear my choice
Lowering price does not always increase revenue with increased demand. Besides reducing price, what else can a firm do to stimulate demand for its product?
Why does Sales discounts are variable consideration?
If the government institutes a specific tax for a good that has a perfectly inelastic demand curve A)the producer passes the entire tax on to the consumer. B)the equilibrium price drops. C)the producer must absorb the entire tax. D)the producer can generally only pass part of the tax onto the consumer.
Question 4 Explain how does a decrease in the current income y affect the consumer's consumption-saving decision. In particular, explain: 1) How will current consumption c, future consumption c', and savings s change; 2) Are there any substitution effect or income effect. Make sure you draw two figures, one for the borrowers and one for the lenders.
Question-. If a pure monopolist can price discriminate by separating buyers into two or more groups: A. the marginal revenue curve will now shift to a position above the demand curve. B.marginal revenue will become less at each level of output than it would be without price discrimination. C. the firm will face multiple marginal revenue curves. E. the marginal revenue curve and the total revenue curve will now coincide I think the answer is C?
When a buyer makes a marginal decision on how to spend an additional dollar, it allows them to: Select one: O a. maximize utility. O b. maximize wealth. O c. minimize their budget constraint. O d. spend their entire budget.
Increased unemployment can reduce consumer demand for goods and services, leading to ?
the margin of safety is the reduction in sales that can occur before the break-even point is reached. It measures the cushion that a particular level of sales can decline without incurring a loss. Discuss two limitations of relying on a margin of safety when predicting future sales. Is it reliable? Why or why not? Provide support for rationale.
Which of the following would not be considered a resource cost of inflation? a. Additional trips to the bank b. Comparison shopping c. Reprinting menus d. Reprinting price tags e. Buyers pay more for what they buy
Chapter nework The availability of close substitutes • Whether a good is a luxury or necessity How broadly the market is defined The time horizon under consideration A good with no close substitutes is predicted to have relatively the price of the good were to increase. demand, since consumers cannot easily switch to a substitute good if The price elasticity of demand of a good depends in part on its relative necessity in comparison to other goods. Assume the following goods all have approximately the same price. Which of the goods has the most elastic demand? O Self-driving cars Insulin for people with diabetes The price elasticity of demand for a good also depends on how the good is defined.

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The more elastic the demand for a good, the O more a sales tax raises the price paid by buyers. O less a sales tax lowers the price paid by buyers. O more a sales tax lowers the price paid by buyers. O less a sales tax raises the price paid by buyers.