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.

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

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Q: c. Compared to the short-run effect of an increase in the excise tax on gasoline, the long-run…

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

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

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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 :

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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…