If the demand for private planes is elastic compared to the supply, then the burden of a luxury tax on private planes: O will fall more on plane manufacturers than on buyers of planes. O will fall more on buyers of planes than on plane manufacturers. O ill fall about equally on plane manufacturers and buyers of planes. CO will depend on whether the buyers or sellers are physically paying the tax.

Q: SAP The demand curve for a product is p = 113 - q 2 and the supply curve is given by p = (q+1)…

A: Demand : p = 113 - q2 Supply : p = (q+1)2 Finding out equilibrium: Demand=Supply 113 - q2=(q+1)2 113…

Q: The burden of a tax and the benefit of a subsidy falls mainly on consumers: O A. if the quantity…

A: Elasticity is the responsiveness of change in quantity due to change in price.

Q: Explain how tax size and elasticity of demand/supply affect the size of tax revenue and social…

A: Elasticity of demand: It the measurement  of the percentage change in the quantity demanded of a…

Q: Time left U:36:11 When the price elasticity of demand is low and the price elasticity of supply is…

A: Share of burden of tax depends on relative elasticities of demand and supply. Higher the elasticity,…

Q: Suppose that the US. government decides to charge beer consumers a tax. Before the tax, 10,000 cases…

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

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

A: a)

Q: Consider a labor market in which workers are paid the minimum wage. When will it matter for tax…

A: A payroll tax is a financial charge levied on employers or employees by the state, calculated as a…

Q: The idea that taxes should be imposed to raise revenues but not change incentives is called a. the…

A: In a market, government imposes taxes in different ways according to the requirements of the market.

Q: b. Who pays more of the tax incidence? O Consumers and producers split the tax. O Producers, because…

A: The graph is showing demand and supply of tanning session when government imposes excise tax of $15…

Q: Question Given a demand curve of P = 31 - 1.25Q and a supply curve of P= 4 +Q, with a tax of 18,…

A: Deadweight loss is the decrease in total surplus resulting when socially efficient quantity is not…

Q: Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be…

A: Answer-

Q: Cars P S D Suppose that your city puts an excise tax on cars but collects the tax from car buyers…

A:

Q: Suppose that the government has decided to place a $2 per litre tax on soft drinks. In this market,…

A: The economics as a study is based upon the idea and decision making where the resources are to be…

Q: Consider the following market where the government Imposes an excise tax that requires that sellers…

A: When tax is imposed, new equilibrium is achieved at a point where demand is equal to supply with…

Q: The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz…

A: Equilibrium is essential for achieving both a fair and productive economy. When a system is at its…

Q: Deadweight loss is defined as O a) the dollar cost of a tax per unit of sale. O b) the cost to…

A: In perfectly competitive market, there is no deadweight loss. Market structures like monopoly and…

Q: Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 40,000…

A: An excise tax is a tax on each unit of a commodity. If this tax is collected from sellers the demand…

Q: Which area(s) represent the amount of consumer surplus lost due to the tax? O a) B-C O b) B+F O)A c)…

A: Consumer surplus refers to the ads abound the price and below the demand curve.

Q: Calculate the percentage of the tax borne by the demander and supplier in each of the following…

A: The fraction of tax borne by the demanded = ES/(ED+ES) Similarly, for supplier = ED/(ED+ES) A) ED =…

Q: In a particular market, the supply is elastic and demand is inelastic. If a tax is imposed on the…

A: In the graph the initial equilibrium is at E where D intersects with S and the equilibrium price is…

Q: Both a payroll tax and an excise tax on alcoholraise revenue and, respectively, shrink the…

A: Taxes: The taxes are considered as the major source of the revenue of the government and as the…

Q: What would happen with the imposition of a sugary tax. Explain and Illustrate with the use of…

A: Deadweight loss consist of losses in the consumer surplus for buyers and the producer surplus for…

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: Say a producer is taxed $t on every unit of output sold. Explain how the burden of that tax ends up…

A: When tax is imposed on the producer, the production cost of the producer rises because for every…

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

A: Answer: option c (buyers of the product) Explanation: The burden of the tax falls more on buyers if…

Q: The consumers' burden associated with an excise tax will be largest when demand is OA. vertical. B.…

A: The consumer's burden associated with an excise tax will be the largest when demand is vertical.

Q: For a given elasticity of demand, the less elastic the supply, the A) greater is the excess burden…

A: Elasticity measures the responsiveness of quantity to changes in the price level.

Q: Deadweight loss is defined as O a) the cost to society created by distortions in the market. O b)…

A: The Deadweight loss (DWL) is created by market inefficiencies.

Q: The figure below illustrates the effect of an excise tax (per unit tax) imposed on sellers (S means…

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

Q: 4. Suppose a market has the following supply and demand equations: QD = 380 - 10P and Q = 80 + 5P.…

A: tax revenue refers the revenue collected from the tax and is the revenue for the government here we…

Q: . Now a tax of 1.5$ per unit is imposed on the manufacturer which he puts entirely on the price of…

A: The equilibrium price of a commodity is the price at which the quantity demanded of the commodity…

Q: The figure below represents a market where the government has imposed a $1 per-uhit tax S2 S1 P2*…

A: Answer: When the government imposes a tax of $1 the supply curve shifts to the left from S1 to S2.…

Q: 3. When there is elastic demand for a product, who holds the tax incidence? A. The government B. The…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose the California legislature passed a sweeping law to lower the number of regulations for…

A: In this case sweeping law will empowers California government to make necessary law and give proper…

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: Tax incidence indicates O A. who is not legally required to send a tax payment to the government. O…

A: Tax: It is the amount of money that is paid by the people to the government.

Q: The following graph depicts the impact in a market after the government imposes an excise tax. $16…

A: The equilibrium in a market is achieved when the demand and the supply in the market balance. A tax…

Q: Suppose that the demand and supply functions for a good are given as follows Demand: Q =1080-7P…

A: At equilibrium, demand and supply curve intersect each other and quantity demand is equal to…

Q: In what situation would producer surplus be positiv O When the price the producer is willing to…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: B The demand and supply functions for a product are: Q=50-3P and Q, =-6+4P, respectively (1) Graph…

A: Given: Demand function: Qd = 50 - 3P Supply function: Qs = -6 + 4P

Q: Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is…

A: Per unit tax as well as percentage tax if collected from sellers shifts the supply curve upward,…

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: (a) In a competitive market, the incidence of an excise tax ("who really pays the tax") is on…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…