Question

1. When demand is less elastic (more inelastic) than supply, the tax burden falls primarily on...

1. When demand is less elastic (more inelastic) than supply, the tax burden falls primarily on consumers, why

2. When demand is more elastic than supply, as shown in, the tax burden falls primarily on producers.

What is the reason that products such as alcohol, cigarettes, and gasoline are taxed so heavily? Support your answer by above mentioned facts

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please do up vote. Thank you have a nice day

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The tax burden falls more heavily on the consumer side regardless of a type of tax...
The tax burden falls more heavily on the consumer side regardless of a type of tax (either a sale tax or an excise tax) as long as the supply of that product is relatively more inelastic than the demand for that product. Group of answer choices True False
- The impact of tax on markets and welfare distribution. - Use supply and demand diagrams...
- The impact of tax on markets and welfare distribution. - Use supply and demand diagrams to answer the following questions. Draw new diagrams for answers to each part. a- Show that regardless of who the tax is levied on (consumers or producers), a tax increase the price paid by consumers, decrease the price received by producers, and make the market smaller compared with a free market. Notes: You should use two diagrams, one for tax on consumers and one...
Tax burdens are higher on consumers when: supply and demand are elastic. demand is elastic and...
Tax burdens are higher on consumers when: supply and demand are elastic. demand is elastic and supply is inelastic. demand is inelastic and supply is elastic. demand and supply are inelastic.
Which of the following sentences about tax incidence is true? I. If demand is relatively elastic,...
Which of the following sentences about tax incidence is true? I. If demand is relatively elastic, producers will bear a greater burden of the tax than consumers. II. If supply is completely inelastic, producers will bear all the burden of the tax. III. If the supply curve is completely elastic, consumers will bear none of the burden of the tax. Group of answer choices II and III only. III only I, II and III. II only. I and II only.
4. If Supply and Demand have the normal shapes (not perfectly elastic or inelastic), a "tax...
4. If Supply and Demand have the normal shapes (not perfectly elastic or inelastic), a "tax on sellers" (as defined by Mankiw) will shift demand upward by less than the amount of the tax, and equlibrium posted price will increase by the same amound as the tax.   True or False? 6. If Supply and Demand have the normal shapes (not perfectly elastic or inelastic), a "tax on sellers" (as defined by Mankiw) will shift demand upward by the amount of...
24. When demand is infinitely elastic (ceteris paribus), and there is technological advance which shifts the...
24. When demand is infinitely elastic (ceteris paribus), and there is technological advance which shifts the supply curve, we should expect that in this market a. none of the other answers are correct. b. equilibrium quantity declines. c. the supply curve moves leftward. d. the new equilibrium price remains unchanged. 25. The burden of a sales tax will fall most heavily upon the consumers when a. demand has unitary elasticity. b. supply is more elastic. c. demand is more elastic....
3) Suppose a $4/unit tax is placed on a good. If the original equilibrium is (P...
3) Suppose a $4/unit tax is placed on a good. If the original equilibrium is (P = $20, Q = 1000) and the new equilibrium is (P = $21, Q = 800), what is the consumer tax burden? Group of answer choices a $2400 b $1000 c $3200 d $800 4) Suppose the demand curve for cigarettes is extremely inelastic (relatively steep). If the government decides to increase its revenue by taxing cigarette sales, will consumers or producers pay a...
Suppose the elasticity of demand for medicine is very inelastic and the elasticity of supply for...
Suppose the elasticity of demand for medicine is very inelastic and the elasticity of supply for medicine equals 1. A tax on the sale of medicine will: burden sellers and buyers relatively equally burden sellers and their workers more than consumers burden consumers more than sellers and their workers not burden consumers or sellers and their workers
2. Suppose supply is perfectly inelastic and demand is relatively elastic. Who bear all the tax...
2. Suppose supply is perfectly inelastic and demand is relatively elastic. Who bear all the tax burden, buyers or sellers? Explain in details. 3. Suppose demand for electricity is inelastic, but not perfectly. A sales tax is imposed, and the tax is levied on buyers. Draw a graph to show the effects of the tax. Indicate CS, PS, tax revenue and DWL after tax on your graph.
4A The price elasticity along a negatively sloped linear demand curve 1 changes at every point...
4A The price elasticity along a negatively sloped linear demand curve 1 changes at every point 2 is less than 1 3IS INFINITE 4 is equal to 1 5 is zero 28A If demand curve is more elastic relative to supply sellers pay a larger portion of the excise tax. B. consumer price increases by the amount of the tax. C. entire burden of the tax is borne by the sellers. D. sellers pay a smaller portion of the excise...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT