Consider a good whose own price elasticity of demand is 0 and price elasticity of supply...
Consider a good whose own price elasticity of demand is 0 and price elasticity of supply is 1. The fraction of a specific tax that will be passed on to consumers is
A.
1.
B.
0.5.
C.
0.25.
D.
0.
E.
0.75.
Homework Answers
Answer
Option A
1
=====
The demand is perfectly inelastic as the elasticity is zero. it means any change in price will not change demand
The supply is unit elastic.
The tax shifts supply curve to left and increase the price for the consumer by the tax per unit amount as the demand curve is a vertical line and supply is upward sloping so all the burden of the tax is on the consumers.
Add Answer to:
Consider a good whose own price elasticity of demand is 0 and
price elasticity of supply...
Answer is B but I don't know how to do it. DJ makes zero economic pront....
Answer is B but I don't know how to do it.
DJ makes zero economic pront. ) Consider a good with own price elasticity of demand as -1.5 and price elasticity of supply as 0.5. The fraction of a specific tax that will be passed through to consumers is approximately A) 0.75 B) 0.25 C) 0 D) 1
if the demand elasticity for good X is 1.33 and the supply elasticity for X is...
if the demand elasticity for good X is 1.33 and the supply elasticity for X is .42 who will pay a greater share of a tax imposed on the market? a) producers b) consumers c) the government d) the tax will be shared equally between consumers and producers
In some markets, certain products are sold. Price elasticity of supply exceeds demand elasticity (price elasticity...
In some markets, certain products are sold. Price elasticity of supply exceeds demand elasticity (price elasticity of demand). Now, value added tax is added to the product. Which of the following is correct? Choose one: a. Manufacturers and consumers bear the same amount of tax. b. Consumers fully pay the tax. c. Consumers carry more of the tax than manufacturers. d. Manufacturers carry more of the tax than consumers. e. Manufacturers pay the tax in full.
1. If a good has a price elasticity of demand equal to 0, ________. a) the...
1. If a good has a price elasticity of demand equal to 0, ________. a) the smallest increase in its price will cause consumers to stop consuming it completely b) the quantity demanded of the good will be completely unaffected by a change in its price c) the demand curve for the good will be upward-sloping 2. At the midpoint of a downward-sloping, linear demand curve for a good, the price elasticity of demand for the good is ________. a)...
16. If price elasticity of demand for good X is 2 and the price elasticity of...
16. If price elasticity of demand for good X is 2 and the price elasticity of supply for good X is 3; if an excise tax of $40 levied on good x, consumers will end up paying _______ and producers paying __________. $15; $25 $16; $24 $25; $15 $24; $16
if elasticity of demand is 1 and elasticity of supply is 0, what percentage of a...
if elasticity of demand is 1 and elasticity of supply is 0, what percentage of a 10 percent tax will be borne by consumers? A. 0 Percent B. 100 percent C. 10 percent D. 50 percent
25) What is measured by the price elasticity of supply? A) The price elasticity of supply...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an...
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an individual for good 1: where p" p2, ps are the prices of good 12, and 3, respectively, and Y represents the income the individual. Suppose good 1 and 2 are substitutes while good 1 and 3 are complements. (a) Describe in words what B,,B,, B, and B, measure. (b) Can you say anything about the expected signs of p.B.B, and B, in the demand...
Suppose the government applies a specific tax to a good where the demand elasticity, e, is-04,...
Suppose the government applies a specific tax to a good where the demand elasticity, e, is-04, and the supply elasticity, η·is 0.8. If a specific tax, τ, of $1.25 were placed on the good, what is the price increase that consumers would pay? The price paid by consumers would increase by s(Enter your response rounded to the nearest penny) The amount producers receive would decrease by s(Enter your response rounded to the nearest penny) The tax incidence on consumers is
Answer is B but I don't know how to do it.
DJ makes zero economic pront. ) Consider a good with own price elasticity of demand as -1.5 and price elasticity of supply as 0.5. The fraction of a specific tax that will be passed through to consumers is approximately A) 0.75 B) 0.25 C) 0 D) 1
In some markets, certain products are sold. Price elasticity of supply exceeds demand elasticity (price elasticity of demand). Now, value added tax is added to the product. Which of the following is correct? Choose one: a. Manufacturers and consumers bear the same amount of tax. b. Consumers fully pay the tax. c. Consumers carry more of the tax than manufacturers. d. Manufacturers carry more of the tax than consumers. e. Manufacturers pay the tax in full.
Problem Set 1 Due Date: Wednesday, January 25,2017 1. Consider the following demand function of an individual for good 1: where p" p2, ps are the prices of good 12, and 3, respectively, and Y represents the income the individual. Suppose good 1 and 2 are substitutes while good 1 and 3 are complements. (a) Describe in words what B,,B,, B, and B, measure. (b) Can you say anything about the expected signs of p.B.B, and B, in the demand...
Suppose the government applies a specific tax to a good where the demand elasticity, e, is-04, and the supply elasticity, η·is 0.8. If a specific tax, τ, of $1.25 were placed on the good, what is the price increase that consumers would pay? The price paid by consumers would increase by s(Enter your response rounded to the nearest penny) The amount producers receive would decrease by s(Enter your response rounded to the nearest penny) The tax incidence on consumers is
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago