Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What is the pass-through fraction of a tax on fanta to consumers?

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

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

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

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: On June 2, 2008, the State of New York imposed a tax of $1.25 per pack of cigarettes. Prior to the…

A: Elasticity of Demand The elasticity of demand is the percentage change in the quantity demanded of a…

Q: The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic.…

A: An excise tax is a tax on each unit of a commodity. Consumers and producers share the burden or…

Q: Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What…

A: a)

Q: The price elasticities of supply and demand affect     both the size of the deadweight loss from a…

A: The elasticity refers to the responsiveness of the quantity demand due to change in the price.…

Q: Compared to consumers, producers will lose the greater amount of surplus from a tax if supply is…

A: The correct Option is (A) That is the supply is more elastic than the demand

Q: When the price elasticity of supply is relative to the price elasticity of demand, then sellers bear…

A: Since you have posted multiple independent questions in the same request, we will solve the first…

Q: The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will…

A: Elastic supply means when price increases by some percentage, quantity supply increases by more than…

Q: Clarify with the help of elasticity analysis how the tax incidence theory helps to trace the final…

A: The economics as a study is based upon the basic idea that the resources which are present with the…

Q: Imposing a sales tax on sellers of a product has an effect that is similar to which of the…

A: Implementation of sales tax on the sellers will affect the supply of the goods.

Q: The annual demand for imported oranges is given by the following equation: QD = 600,000 − 30,000P…

A: The market demand for imported oranges is given by the equation: QD=600000-30000P and the imported…

Q: With the use of diagrams and by including consumer and producer surplus in your answer, explain…

A: A tax incidence is define as the division of a tax burden which has to be shared in between the…

Q: The price elasticity of demand for lychee fruit is 1.3, while the price elasticity of supply is 0.7.…

A: Here, price elasticity of demand is given as 1.3 and price elasticity of supply is given as 0.7.…

Q: Consider the market for junk food. Illustrate and explain the effects on price, quantity and the…

A: The market for junk food is represented in the below steps.

Q: The demand for X is given by X = 100-2P, and its supply is perfectly elastic at P,= 14. The demand…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: The government is considering levying a tax of $60 per unit on suppliers of either concert tickets…

A: Graph: Concert tickets (Deadweight loss = area of triangle ABC as shown, since I can't access your…

Q: Suppose the demand for grape jelly is perfectlyelastic (because strawberry jelly is a…

A: Elasticity mentions the responsiveness of one economic variable like quantity demanded to a change…

Q: Using demand curve approach, explain how a commodity tax incurs excess burden

A: In a market, tax burden refers to the additional cost bear by the market participant when government…

Q: What is the tax incidence of an excise tax when demand is highly inelastic and highly elastic?

A: When appropriate the government can intervene in a market by levying excise tax in order to…

Q: the supply of a good is perfectly inelastic, then suppliers will bear the full burden of an excise…

A: Market refers to the place where the consumer can buy whatever they want to buy at the given prices…

Q: The reason which determines the elasticity of tax burden on buyers and sellers.

A: Elasticity determines who will bear the burden of taxes: buyers or sellers. When Demand is more…

Q: very urgent!!! the demand for mineral water is P=10 – (2/3) Q and supply function for mineral water…

A: As per the guidelines, we can only answer 1 question up to 3 sub-parts at one time, we’ll answer…

Q: Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and…

A: Answer: Introduction: Incidence of tax: incidence of tax refers to the burden shared by producer and…

Q: If the demand for private planes is elastic compared to the supply, then the burden of a luxury tax…

A: In an economy, various taxes are imposed on different products to reduce income inequality or get…

Q: Government levied a tax on good A. The less elastic the demand is, the greater or the smaller the…

A: The demand for the good is said to be elastic if the quantity demanded of the commodity changes more…

Q: Would consumer or producer carry the burden of tax if good is elastic? Show on a graph

A: The tax burden is decided based on the elasticity of demand and supply. If elasticity of demand is…

Q: if the demand curve is very inelastic and the supply curve is very elastic in the market then…

A: Elasticity is a monetary idea used to gauge the adjustment of the total amount requested of a…

Q: When the price elasticity of supply is relative to the price elasticity of demand, then sellers bear…

A: The tax burden is higher on the party that is inelastic towards the price of the good because they…

Q: What is the incidence of an excise tax when demand is highly inelastic? Highly elastic? What effect…

A: An excise tax is an indirect tax not being paid directly by the customers instead the excise tax is…

Q: Neither the supply of nor the demand for a good is perfectly elastic or perfectly inelastic.…

A: Placing a tax on a good, shifts the supply curve to the left. It leads to a decrease in demand and…

Q: Figure 18-2 shows the widget market before and after an excise tax is imposed. What percentage of…

A: The price paid by the consumer before tax imposition is $100 (where the demand curve is equal to…

Q: When the price elasticity of demand is high and the price elasticity of supply is low, the burden of…

A: The tax burden on buyers and sellers: P'b(t) = η/(η+ε) P's(t) = ε/(η+ε),  where, P'b(t) is the…

Q: How does elasticity affect the burden of a tax? Justify your answer using supply and demand…

A: The economic effect of taxation are manifold. This include micro effect on distribution of income…

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: Scenario...Recently there has been discussion in the news about taxing junk food (soft drinks, for…

A: If policymakers are trying to reduce the incidence of obesity by imposing a tax on junk food, then…

Q: A sales tax is imposed on good A. The supply of good A is not perfectly elastic or perfectly…

A: Part a) The tax incidence depends on the relative price elasticity of supply and demand. When supply…

Q: Given the demand and supply functions of a certain good: P =-Q-Qp +122 P = 5Qs +10 Find the…

A: Answer is given below

Q: How do the elasticities of supply and demand affectthe deadweight loss of a tax? Why do they have…

A: Tax is a kind of fees that is leived by the government inorder to collect revenue for the people.…

Q: Given the inelasticity of cigarette demand, discuss an excise tax on cigarettes in terms of…

A: Inelastic demand is one in which there is a slight change in the quantity demanded due to a price…

Q: If elasticity of demand is greater than elasticity of supply, more tax incidence will be on who? A.…

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