When the price elasticity of supply isrelative to the price elasticity of demand, then sellers bearof the economic burden of a tax.O small; allsmall; noneO large; a smaller sharelarge; a bigger share Moral hazard is consistent with the idea that when people have health insurance that protects against highmedical expenses, they tend toseek less medical care.get sick more often.get sick less often.seek more medical care.

Since you have posted multiple independent questions in the same request, we will solve the first…

When the price elasticity of supply is relative to the price elasticity of demand, then sellers bear of the economic burden of a tax. small; all small; none large; a smaller share O large; a bigger share

When the price elasticity of supply is relative to the price elasticity of demand, then sellers bear of the economic burden of a tax. small; all small; none large; a smaller share O large; a bigger share

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter11: The Market For Pharmaceuticals

Section: Chapter Questions

Problem 1QAP

See similar textbooks

Related questions

Q: Figure 8-1 P PRICE & K L M N QUANTITY consumer surplus after the tax. Refer to Figure 8-1. Suppose…

A: The external market situation often allows the price to sell goods at a price higher than the price…

Q: Figure 8-1 P¹ P" P" Price J K L M N 54 B Supply Demand Refer to Figure 8-1. Suppose the government…

A: Tax is a mandatory payment to the government. The tax amount is spent on the economy through public…

Q: Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What…

A: a)

Q: Compared to consumers, producers will lose the greater amount of surplus from a tax if supply is…

A: The correct Option is (A) That is the supply is more elastic than the demand

Q: Suppose that in Australia the price elasticity of steel demand of -1.5 and the price elasticity of…

A: "Price elasticity of demand measures the responsiveness of quantity demanded of a commodity with…

Q: If sellers bear more of the burden of taxation then O supply is more elastic than demand O…

A: Tax incidence refers to the distribution of tax burden between buyers and sellers. The burden of the…

Q: refer to the graph shown. given the same supply elasticity, the burden of a 10 percent tax would be…

A: The degree to which the amount supplied is responsive to a change in the price of a specific…

Q: - The greater the elasticities of demand and supply the:

A: As per fundamental economic hypothesis, the supply of a goods increment when its value rises. Then…

Q: Which of the following statements are correct? The statutory or legal incidence of a tax determines…

A: The tax can be divided into two categories such as per unit tax and lumpsum tax. Any tax results in…

Q: Why must local governments pay attention to the types of products they tax. Describe in detail how…

A: The objective of the question is to understand the importance of the types of products that local…

Q: With a tax of Rs4/unit,the price of the good rises from Rs5/unit to Rs9/unit. Which of the following…

A: The market price of a good was Rs5 (before tax) It means the price paid by consumer (before tax) is…

Q: Calculate the percentage of the tax borne by the demander and supplier in each of the following…

A: The fraction of tax borne by the demanded = ES/(ED+ES) Similarly, for supplier = ED/(ED+ES) A) ED =…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: TRUE OR FALSE. If the price elasticity of demand is 2 while the price elasticity of supply is 2, the…

A: Tax incidence studies the division of tax burden between buyers and sellers. Formula Tax burden on…

Q: Graph for indirect tax on good A and the coefficient of the price elasticity of demand is >1

A: The objective of the question is to understand the impact of an indirect tax on a good (A) where the…

Q: Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: It is given that elasticity of demand= -0.8, and elasticity of supply=0.7 is inelastic in nature.…

Q: Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If…

A: The burden of a tax is generally shared by the buyers and sellers in a market. In other words, the…

Q: The reason which determines the elasticity of tax burden on buyers and sellers.

A: Elasticity determines who will bear the burden of taxes: buyers or sellers. When Demand is more…

Q: Suppose the supply is perfectly inelastic, which means the price elasticity of supply is 0. A…

A: As supply is perfectly inelastic , the supply curve is vertical in nature. The imposition of tax…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: a) The burden would be shared more by the group which is less elastic. This is because they cannot…

Q: When the price of demand is high and the price elasticity is low the burden of a tax falls primarily…

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

Q: if the demand curve is very inelastic and the supply curve is very elastic in the market then…

A: Elasticity is a monetary idea used to gauge the adjustment of the total amount requested of a…

Q: When the absolute value of price elasticity of demand is greater than the absolute value of price of…

A: The customers will bear a larger fraction of the tax imposed if the demand (dd) is going to remain…

Q: The greater the elasticity of demand, the smaller the deadweight loss of a tax. True False

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Figure 18-2 shows the widget market before and after an excise tax is imposed. What percentage of…

A: The price paid by the consumer before tax imposition is $100 (where the demand curve is equal to…

Q: Exercise 4 The government has imposed a new tax on all airline travel. The market has two types of…

A: Intermediate Microeconomics is a core economic theory course that will improve a student's ability…

Q: The side of the market with the relatively higher elasticity will face more of the tax burden.…

A: The tax burden is inversely related to elasticity. The side of the market with the relatively higher…

Q: “Consumers shoulder more tax burden for products with elastic demand relatively to products with…

A: Inelastic demand refers to a situation in which the quantity of a product demanded changes very…

Q: Suppose in the market for cigarettes, the price elasticity of supply is 2.4 and the price elasticity…

A: Price elasticity of supply: Price elasticity of supply measures the responsiveness of the quantity…

Q: If elasticity of demand is greater than elasticity of supply, more tax incidence will be on who? A.…

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

Question

When the price elasticity of supply is
relative to the price elasticity of demand, then sellers bear
of the economic burden of a tax.
O small; all
small; none
O large; a smaller share
large; a bigger share

Moral hazard is consistent with the idea that when people have health insurance that protects against high
medical expenses, they tend to
seek less medical care.
get sick more often.
get sick less often.
seek more medical care.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Note

VIEW

Ans. (1)

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Health insurance is a
Any two goods in the health market
Why can’t a healthy lifestyle and a medical history with no major incidents be enough to guarantee low health care costs going forward?
How can I Analyze the effect of healthcare reform on the healthcare consumer who uses the Insurance company launching a new medical product for the health insurance exchange
What challengers are hospital managers likely to encounter while making efficient use of health resources
For a person who previously had no insurance and received an insurance plan paying for 80 percent of all types of medical care, what increase in use would you expect for hospital care, dental care, and physician services, on average?
Why is healthcare fraud is a big problem in the U.S. economy?
Insurance coverage has been shown to diminish the importance of time in the decision about how much medical care to seek and which providers to use. True OR False
What are some of the metrics economists use to measure health outcomes?
How does moral hazard issue affect the health care market in Hong Kong? Suggest possible remedies to alleviate the problems.
The demographics of the United States is constantly evolving. Analazye state New York. How do the various age populations compare to the national average? What sort of health resources should be available for the populations in highest demand?
What percentage of total health expenditures in the United States are paid for by government ( Federal, State and local)?