Homework Answers
The correct option is buyers if demand is highly inelastic.
The economic burden of tax is borne mostly by the buyers if demand is highly inelastic.
It is because tax incidence depends upon the elasticity of demand and supply. When demand is more inelastic , buyers bear most of the tax burden. In case supply is more inelastic, suppliers bear most of the tax burden.
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The economic burden of a tax is borne mostly by: buyers if demand is highly elastic....
Who bears the tax burden if the demand curve is perfectly elastic? a. Sellers b. Buyers...
Who bears the tax burden if the demand curve is perfectly elastic? a. Sellers b. Buyers c. Government d. Both sellers and buyers
Assume that coal demand is elastic, while coal supply is highly inelastic. If a tax of...
Assume that coal demand is elastic, while coal supply is highly inelastic. If a tax of $5.00 per short ton is placed on coal buyers, we would expect that the burden of the tax would fall on Buyers and sellers equally. Buyers more than sellers Sellers more than buyers Not enough information to answer the question.
Suppose the supply of a good is perfectly elastic while the demand is elastic. The burden...
Suppose the supply of a good is perfectly elastic while the demand is elastic. The burden of a tax on the drug will A) be shared by the buyers and sellers. B) fall entirely on the sellers. C) fall entirely on the buyers D) fall on neither the buyers nor the sellers.
If the demand for a good is highly elastic, then imposing an excise tax on that...
If the demand for a good is highly elastic, then imposing an excise tax on that good will A. mostly burden consumers. B. result in a large increase in quantity C. mostly burden producers D. lead to a minor decrease in price.
If the demand for a good is highly elastic, then imposing an excise tax on that...
If the demand for a good is highly elastic, then imposing an excise tax on that good will a. lead to a minor decrease in price. b. result in a large increase in quantity. c. mostly burden producers. d. mostly burden consumers.
If the demand for a good is perfectly elastic, then a tax on the good will...
If the demand for a good is perfectly elastic, then a tax on the good will be paid O A. completely by the buyers. OB. completely by the sellers. O C. equally by the buyers and sellers. OD. mostly but not completely by the buyers. O E. mostly but not completely by the sellers.
In which of the following cases will the tax burden be the largest on the consumers?...
In which of the following cases will the tax burden be the largest on the consumers? The unit tax is $3 on buyers, and the demand and supply are equally elastic The unit tax is $1 on buyers and $2 on sellers, and the demand is less elastic than the supply The unit tax is $3 on sellers, and the demand is more elastic than the supply The unit tax is $1 on buyers and $2 on sellers, and the...
If a tax is imposed on a good where both supply and demand are somewhat elastic,...
If a tax is imposed on a good where both supply and demand are somewhat elastic, but demand is more elastic than supply, the burden of the tax will be borne a. by producers alone. b. by consumers and producers equally. c. by consumers alone. d. mostly by producers but partially by consumers. e. mostly by consumers but partially by producers.
f the supply is more elastic than the demand, ____________ will bear more subsidy benefit. If...
f the supply is more elastic than the demand, ____________ will bear more subsidy benefit. If the demand is more elastic than the supply, _________ will bear more tax burden. Sellers: Buyers Sellers: Sellers Buyers: Buyers Buyers: Sellers
substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic...
substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic supply and demand, the burden of the tax will be borne O by producers alone. y by producers but partially by consumers O mostly by consumers but partially by producers. O by consumers alone. O by consumers and producers equally. D Question 47 2 pts When demand is perfectly elastic, the demand curve is
If the demand for a good is perfectly elastic, then a tax on the good will be paid O A. completely by the buyers. OB. completely by the sellers. O C. equally by the buyers and sellers. OD. mostly but not completely by the buyers. O E. mostly but not completely by the sellers.
In which of the following cases will the tax burden be the largest on the consumers? The unit tax is $3 on buyers, and the demand and supply are equally elastic The unit tax is $1 on buyers and $2 on sellers, and the demand is less elastic than the supply The unit tax is $3 on sellers, and the demand is more elastic than the supply The unit tax is $1 on buyers and $2 on sellers, and the...
substitutes. DQuestion 46 2 pts If a tax is imposed on a good with equally elastic supply and demand, the burden of the tax will be borne O by producers alone. y by producers but partially by consumers O mostly by consumers but partially by producers. O by consumers alone. O by consumers and producers equally. D Question 47 2 pts When demand is perfectly elastic, the demand curve is
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