What is an example of a market that govenrments should not tax for economic reasons?

Q: With the help of appropriate diagrams, explain how a tax can be used to reduce the consumption of a…

A: Tax are contribution to goverment which are levied on individual as well as or a firm which are…

Q: If the government increases alcohol taxation how will it affect consumption?

A: Taxes are the amount levied on goods which increases the price of good making the consumers to pay…

Q: Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall entirely on the…

A: If a tax is imposed on the buyer of a product, the tax burden is shared by both buyers and sellers.…

Q: The government taxes both clothing and tobacco. For a similarly sized tax, would you expect the…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?

A:

Q: If the government wants to use a Pigouvian tax to alleviate the problem of obesity contagion, what…

A: We are going to discuss ways to minimize negative externalities.

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: What are pros and cons to increasing the gasoline tax?

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: Alcohol, tobacco, and gasoline have inelastic demand, so the buyers of these items pay most of the…

A: The alcohol, gasoline, tobacco have inelastic demand, that is less than 1, it means when the price…

Q: Why does the government ass excise taxes to certain products?

A: In a market, government intervenes in different ways by providing subsidies or imposing taxes.

Q: why do comsumers pay the tax on goods if the elasticity of demand is less than the elasticty of…

A: Demand is said to be inelastic when the change in price leads a change in quantity demanded in…

Q: ould consumer or producer carry the burden of tax if good is inelastic? Show on a grap

A: Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in…

Q: How does a tax on buyers affect the market equilibrium?

A: Suppose, there is a market in which the market equilibrium is attained at point E where the demand…

Q: What are the principles of Tax-incidence?

A: Taxes are described as mandatory fees collected from citizens by the government. These taxes are the…

Q: suppose that the local government of Columbus decides to institute a tax on seltzer consumers.…

A: To calculate the impact of the tax on seltzer consumption, revenue, and consumer surplus, we need to…

Q: What happens to the deadweight loss and taxrevenue when a tax is increased?

A: Taxes refer to the legal proceedings and the formalities that need to be addressed by every citizen…

Q: How does a tax on sellers affect the market equilibrium?

A: For sellers of a product, a tax is imposed. The direct effect of the tax in this situation is on the…

Q: Does a tax on buyers affect the demand curve?

A: The demand curve shows the negative relationship between price of the goods and its quantity…

Q: The following graph shows the market for the long-distance bus rides. In the absence of taxes, the…

A: We have given following graph

Q: What is an indirect tax give two examples in economics

A: According to the given question In simple words we can say that tax is basically and compulsory…

Q: If tax incidence is not affected by whether the government makes buyers or sellers pay the tax then…

A: In a market, governement imposes tax on the exchange of goods and services between seller and buyer…

Q: Under which circumstances does the tax burden fall entirely on consumers?

A: When talking about tax burden, it depends upon the responsiveness of the market participants to the…

Q: what does it mean for a market to be charcterized

A: A market is a particular place where two parties come together or meet to facilitate the exchange of…

Q: . What happens when government imposes a tax of 60 cents per gallon on buyers?

A: When economic pressures are already in proportion, there is said to be an economic equilibrium.In…