The Ramesy rule suggest that society should a. All of these answers are correct b. tax a few goods with elastic demand at high rates. c. tax goods with relatively inelastic demand at lower rates than goods with relatively elastic demand. d. tax lots of goods at low tax rates.

Q: Give an example of a product that has inelastic demand and elastic supply in the market to price. If…

A: An inelastic demand is defined as one where a change in price does not significantly impact demand…

Q: 5. If elasticity > 1 then governments collect more revenues if they increase taxes

A: The curve is elastic if elasticity is greater than 1.If it is less than 1, it is considered to be…

Q: The Laffer curve illustrates that, in somecircumstances, the government can reduce a tax ona good…

A: Laffer curve shows the relationship between tax revenue and tax rate collected by the government.

Q: When a tax is placed on the sellers of cell phones, the size of the cell phone market a. and the…

A: Given:- Tax placed on cell phone seller To determine:- Size of cell phone market=?

Q: (V) Total surplus after tax Answer:

A: The total surplus in a market is a proportion of the all out prosperity of all members in a market.…

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: if the city of San Jose removes a tax on hotel rooms, then the price paid by buyers will Group of…

A: The supply curve is also the marginal cost curve of the seller. And when the government imposes per…

Q: a tax is levied on the seller of a product, what will happen to the demand curve and the supply…

A: Equilibrium occurs when demand and supply forces are equal. The imposition of taxes leads to…

Q: Suppose the demand for apple is inelastic and the supply of apple is elastic, and the demand for…

A: incidence of tax is totally dependent on the elasticities of demand and supply curve of the consumer…

Q: Examine the diagram then for the market for cigarettes with the tax. Indicate: I. Price received by…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: .The supply of meat is more elastic in the long run than in the short run. Ceteris paribus, as time…

A: Tax burden refers to the economic impact or cost of a tax on the different  agents involved in an…

Q: at the optimal output , what price will do drop in chrge and what will be its output?Price $ Output…

A: (1)   At optimal output,

Q: Eggs have a supply curve that is linear and upwardslopingand a demand curve that is linear…

A: Supply and demand is an economic model of value determination in a very market in economic science.…

Q: the government wants to raise tax revenue. They can either tax groceries or meals at fancy…

A: Part a ) The more inelastic the demand , the more will be the deadweight loss.  Necessities usually…

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

A: The given graph in the question shows the demand curve of coal which is represented by "D" and the…

Q: Energy dnnKS has been causing dea th Senator Miller proposes 8 2 tax ( that on average cost $ 2. on…

A: Consumer-surplus(CS) is the difference in the consumer’s maximum willingness to pay(reservation…

Q: #3. Suppose that the government was taxing consumers of widgets by $3 per unit. Now it repeals the…

A: The tax effect on the market does not change depending on whom the tax is levied.

Q: Assume that the demand for coal is more elastic than the supply. A tax on coal will    a. increase…

A: A tax could be a mandatory fee or financial charge levied by any government on a personal or a…

Q: The more inelastic the supply. OA. the larger the portion of the tax paid by producers. B. the more…

A: Price Elasticity of supply measures the responsiveness of quantity supplied with respect to change…

Q: (c) Calculate the producer surplus before the tax. Answer:

A: Answer: The following formula will be used to calculate the producer surplus before tax:…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram in the photo below to…

A: A tax on a good shift the supply curve to the left and decreases the quantity and increases price in…

Q: Price Supply P' K P" L Y M B N Demand Quantity tefer to the figure. Suppose the government imposes a…

A: In the free market, the equilibrium price and quantity is determined by the forces of downward…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: There is a market for Cigarettes, and the government imposes a tax on cigarettes. The imposition of…

Q: Assume the government imposes a $2.00 tax on a good that costs $5.00. If the price buyers pay…

A: Burden of tax refers to those who essentially end up paying the tax.

Q: A new tax is imposed in a market with inelastic supply and inelastic demand.  What do we know about…

A: When talking about deadweight loss, it can be said that it is the amount of total output or income…

Q: In general, increasing a tax on a seller blank A. increases the amount buyers purchase B. increase…

A: In order to get the tax revenue, government chooses to tax on either buyer and seller.

Q: In a recent report it was said that there are health benefits to consuming coffee as it has…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: . The government has decided that the free-marketprice of cheese is too low.a. Suppose the…

A: Price control is a legislative instrument that is imposed by the state to regulate the market price…

Q: The government wants to reduce the consumption of gasoline by 10% to slow down global warming.…

A: Since, you have posted multiple questions, we will solve the first one for you. If you want any…

Q: A tax on of $1 per kg on the buyers of sugar will cause Select one: a. the demand curve to shift…

A: A tax on sellers or buyers would lower the surplus earned by both buyers and sellers. This in turn…

Q: In which of the following cases would an excise tax be borne mostly by sellers?   a. A tax on…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.

Q: If the government removes a tax on a good, then the quantity of the good sold will______.

A: The answer to the question is as follows :

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Price received by producers = 8 Quantity of cigarettes sold= 10 Price paid by consumers = 12 The tax…

Q: Rick Perry, trump's Energy Secretary proposed subsidies for coal industry. A first yea. economics…

A: By providing subsidies to coal industry, trump's Energy Secretary wants to increase the supply of…

Q: don't use chatgpt answer and i need correct answer proper explanation step by step and i will 10…

A: After the tax is imposed by the government of P' - P"', the area M will represent the producer…

Q: 7. Taxes on particular goods discourage their consumption. Economists say that such taxes "distort…

A: Since you have asked multiple subparts we would be answering the first three for you. To get the…

Q: City’s hotel tax used to be 20%. Today it is 12%. Total hotel tax revenue today is greater at a 12%…

A: Given:  City Hotel Tax in past : 20% City Hotel Tax in present : 12% Hotel Tax Revenue in past : 20%…

Q: 1. Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: Part a) Tax always cause inefficiencies called deadweight loss.The term deadweight loss of taxation…

Q: If a policymaker wants to raise revenue by taxinggoods while minimizing the deadweight losses,…

A: The tax is the unilateral payment from the people to the government. Tax is the main source of…

Q: The incidence of a tax is determined by which side of the market is less sensitive to a change in…

A: Tax incidence refers to the split of a tax burden across stakeholders such as buyers and sellers,…

Q: 2. Suppose the price.elasticity of demand for commödity M is less than one. When a tax is imposed on…

A: Correct option is C.

Q: (e) (ii) Calculate the producer surplus after the tax. Answer:

A: Producer Surplus refers to the difference between what a producer is willing to receive and what he…