Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 8, Problem 3CQQ
To determine
The impact of tax on eggs.
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When demand is more elastic than supply, demanders pay a smaller share of the tax and sellers pay a larger share of the tax.
Select one:
a.
False
b.
True
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.
When a good is taxed, the burden of the tax fallsmainly on consumers ifa. the tax is levied on consumers.b. the tax is levied on producers.c. supply is inelastic and demand is elastic.d. supply is elastic and demand is inelastic
Chapter 8 Solutions
Essentials of Economics (MindTap Course List)
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- . A tax on umbrellas will most likely Select one: a. fall mostly on the umbrella buyers rather than the producers. b. be an effective way to tax those who don’t earn enough to pay income taxes. c. cause a large decline in the sales of umbrellas because demand is elastic. d. raise large amounts of tax revenue for the government.arrow_forwardI want the answerarrow_forwardSolve in 1 min i will give u instant like indeedarrow_forward
- 48. When demand is less elastic than supply, demanders pay a larger share of the tax and sellers pay a larger share of the tax. Select one: a. False b. Truearrow_forwardThe Ramesy rule suggest that society should A.all of these B.tax a few goods with elastic demand at high rates C.tax lots of goods at low tax rates D.tax goods with relatively inelastic demand at lower rates than goods with relatively elastic demandarrow_forwardSuppose that the Australian government imposes a sales tax on a product and both buyers and sellers share the burden of the If the price elasticity of demand for the product is perfectly inelastic. Which of the following is true? Select one: a. Sellers would pay more of the tax than buyers. b. Buyers would pay all of the tax. c. Buyers and sellers would share the tax burden equally. d. Sellers would pay all the tax.arrow_forward
- Solve all this question......you will not solve all questions then I will give you down?? upvote......arrow_forwardThe side of the market with the relatively higher elasticity will face more of the tax burden. Select one: a. True b. Falsearrow_forwardWhich of the following statements about the relationship between elasticity and tax incidence are true ? Choose one or more:A. A tax on a good for which both demand and supply are relatively inelastic will cause a relatively large transfer of welfare from consumers and producers to the government. B.The incidence of a tax depends on who the tax is placed on. C.If a tax is imposed on a good with a perfectly inelastic demand, then consumers bear the full incidence of the tax. D.When demand is more inelastic than supply, producers bear more of the incidence of a tax. E.When demand is more inelastic than supply, consumers bear more of the incidence of a tax.arrow_forward
- The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that shows the excess burden of the tax on basketballs. The excess burden of the tax on basketballs is $ million. The supply of basketballs is more pays most of the tax. A. elastic; seller OB. elastic; buyer OC. inelastic; buyer O D. elastic; seller than the demand for basketballs, and thearrow_forward1. When the absolute value of price elasticity of demand is greater than the absolute value of price of elasticity of supply, we can say with certainty: A. Consumers bear most of the tax burden. B. Producers bear most of the tax burden. C. The burden is equal for consumers and producers. D. Any of the above E. None of the abovearrow_forwardAssume that the demand for coal is more elastic than the supply. A tax on coal will a. increase the price of coal paid by buyers, and sellers bear a smaller burden of the tax b. decrease the price of coal that sellers really get, and sellers have to bear a bigger burden of the tax c. decrease the price of coal paid by buyers, and buyers have to bear a bigger burden of the tax d. increase the price of coal that sellers really get, and buyers bear a smaller burden of the taxarrow_forward
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