Alcohol, tobacco, and gasoline have inelastic demand, so the buyers of these items pay most of the tax on them.” Show and explain this statement with the help of hypothetical demand and supply graph.

Q: Give an example of a product that has inelastic demand and elastic supply in the market to price. If…

A: An inelastic demand is defined as one where a change in price does not significantly impact demand…

Q: The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays…

A: Given  The tax imposed is paid by the buyer only  We know that the perfectly elastic side does not…

Q: Fill in the following table with the quantity sold, the price buyers pay, and the price sellers…

A: Quantity Price buyers pay Price sellers receive Before Tax 250 $ 25 $25   After…

Q: 25. Answer the following tax related questions. a. Consider a (per unit) tax on two different goods,…

A: In a market where the supply curve is inelastic, the DWL is smaller than the market where the supply…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Reservation price for consumer is the maximum price that consumers are willing  to pay. Reservation…

Q: Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 15,000…

A: Incidence of tax alludes to the dispersion of taxation rate among producers and consumer. By and…

Q: The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays…

A: Elasticity measures how much tax is borne by buyers or suppliers. Higher the elasticity, flatter the…

Q: The graph shows the market for chocolate bars. Draw a point at the equilibrium quantity and…

A: A tax shifts the supply curved outwards. The difference between the price for the quantity sold…

Q: A tax is placed on beer and sellers have ended up bearing most of the burden of this tax. Why is…

A: When a tax is placed on the good, quantity exchanged in the market decreases. Buyers pay higher…

Q: It is known that Qd = 80-2P and Qs = -10 + P Question: a. Draw it in a graph! b. If the government…

A: Qd = 80-2P Qs = -10 + P

Q: Due to imposing a sugar tax, who would likely suffer a greater share of the deadweight loss – the…

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

Q: The City of Philadelphia is currently considering a 3 cent per ounce tax on sugary beverages. A…

A: a)Consumers are prefers lump-sum tax. The reason is, the burden of tax is partially borne by both…

Q: The graph shows the market for a vital-to-life drug on which the government has imposed a tax of $2…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.

Q: "In South Africa, the tax on insulin is between 10 and 20 percent. If you are rich and living in…

A: Introduction this topic related to Insulin which is consumed by diabatic person's.

Q: The following graph shows the daily market for wine. Suppose the government institutes a tax of…

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

Q: If the government removes a tax on a good, then the quantity of the good sold will______.

A: The answer to the question is as follows :

Q: (Figure: Tax on Seller) In the graph shown, the original equilibrium price is $50. A $6 tax is…

A: The equilibrium price before imposition of tax = 50 if tax of $ 6 is placed on the sellers then the…

Q: The government wants to stop obesity in children, so they decide to tax soda producers for each unit…

A: Introduction Tax is divided between buyer and seller under tax incidence. It is the ultimate burden…

Q: conomists in Champaign have been studying the local market for pizza. The market is described in the…

A: With tax imposed in the free market, the equilibrium quantity will fall and the market price will…

Q: The following graph depicts a market where a tax has been imposed. P. was the equilibrium price…

A: From the given graph, we can say that the “A +E” is the total amount of producer surplus and…

Q: 7. Effect of a tax on buyers and sellers Part 2 The following graph shows the daily market for wine.…

A: The dynamics of demand and supply determine the equilibrium price and quantity in a free market, but…

Q: ould consumer or producer carry the burden of tax if good is inelastic? Show on a grap

A: Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in…

Q: Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves…

A: Taxes are used by all governments, whether national or municipal, to fund public initiatives such as…

Q: Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is…

A: The demand and supply are given and the tax rate charged on the sellers is given to be $12. Thus,…

Q: To raise money for a new student union, the Student Snack 2.25 Bar charges a tax of $0.75 on each…

A: The equilibrium in the market is obtained at the intersection of the demand curve and the supply…

Q: The previous question was: The New York City announces they will be placing a three dollar tax on…

A: The impact of the imposition of tax would affect the demand or the supply of the tax depending on…

Q: A tax on umbrellas will most likely Select one: a.cause a large decline in the sales of umbrellas…

A: At a marketplace, when government imposes a tax on any good, it will influence the decision of an…

Q: The figure below shows a market of good C. Suppose that the government levied a tax on C. If the…

A: The markets are the place where the buyers and the sellers of various goods and services tend to…

Q: Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a…

A: A 10,000 percent tax on bullet will not likely to generate a lot of revenue.  The reason is as the…

Q: Tax revenue when tax is $80 Tax revenue when tax is $40 Tax revenue when tax is $120 The graph shows…

A: From the demand schedule, the demand equation is P = 200 – 2Q and the supply equation is P = 40 +…

Q: Q=2P be supply and Q=20-2P be demand. The equilibrium quantity with a tax of 2 is......... and the…

A: Equilibrium is achieved at the output level where Qs=Qd

Q: In the market for candy, researchers have estimated the following demand and supply curves. Demand:…

A: Given  Demand :P=8-Q100         .... (1) Supply: P=3Q700         .... (2)

Q: The UK government is considering the introduction of a unit tax on meat to alleviate the impact of…

A: Imposition of taxes on any good leads supply curve to move leftwards as the producer is unable to…

Q: Briefly discuss the effect of price elasticity of supply and demand on tax incidence. When the…

A: From the point of view of the taxpayer and government, the incidence of taxation is an important…

Q: The following graph shows the market for the long-distance bus rides. In the absence of taxes, the…

A: Tax on production increases cost of production which leads to decrease in supply.

Q: Draw a diagram to show the effect of a tax on producers. Show one demand curve and two supply curves…

A: The demand and supply curve before tax are given below. The intersection of demand and supply gives…

Q: Which is an excise tax on sugary drinks more likely to accomplish: a large reduction in the…

A: Tax is the amount that is charged on the revenue of an individual or organization by the government.

Q: Price (per ride) $7.50 7.00 6.50 6.00 5.50 E 5.00 4.50 4.00 3.50 3.00 D 2.50 2.00 5 6 7 8 9 10 11 12…

A: Here, given information is: Equilibrium price: $5 per ride Equilibrium quantity: 10 million rides…

Q: After economics class one day, your friend suggests that taxing food would be a good way to raise…

A: A regressive tax is a type of tax that is imposed in a manner that the tax rate reduces with the…

Q: According to the Ramsey taxation result, which of the following markets would be the most efficient…

A: Ramsey model of optimal taxation means higher tax revenue with given level of deadweigth loss due to…

Q: question: Which of the following statements is most true?  A) Producers will pay the entire tax.…

A: Equilibrium is achieved where quantity supplied equals quantity demanded.

Q: What is an indirect tax give two examples in economics

A: According to the given question In simple words we can say that tax is basically and compulsory…

Q: OC. the buyer and the seller split the tax evenly. O D. it is impossible to say how the tax is split…

A: Demand And Supply  Demand refers to the quantities of a commodity that the consumers are ready to…

Q: The graph shows the market for basketballs in which sellers are taxed $6 a ball. Draw a shape that…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Sinead commutes from her suburban residence to the city center. When asked her opinion of a proposed…

A: Congestion taxes are imposed on the use of public good for reducing the excess demand. A higher…

Q: How would I solve this question?: suppose demand for cigarettes is inelastic and supply of…

A: Elasticity refers to an economic instrument that calculates the change in the quantity demanded a…

Q: As price elasticity of demand increases, the burden of a tax gets _______; as price elasticity of…

A: Price elasticity of demand: It can be define as the ration of percentage change in quantity demanded…