In the long run, both supply and demand tend to become more elastic. This suggests that, in the long run, the O government will likely reduce tax rates. O deadweight loss from a tax will be less than it is in the short run. O deadweight loss from a tax will be greater than it is in the short run. O deadweight loss from a tax will be zero.

Q: xplain how changing the price elasticity of demand from elastic to inelastic affects the consumer's…

A: The percentage change in quantity demanded divided by the percentage change in price is the price…

Q: 2. Suppose demand and supply are given by Qd, = 7-, and Qs =P- a. Determine the equilibrium price…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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.

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A: The formula for determining the consumer's tax burden is: (Elasticity of Supply)/(Sum of both…

Q: Given: Qd= 18-0.25P Qs= 12+0.5P Solve for the following a. The equilibrium price and quantity b. If…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Suppose that for home-owning families in the 32% tax bracket, the deductibility of mortgage payments…

A: Percentage change in price=20%Price elasticity of demand=1.2

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.

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A: Supply and demand is an economic model of value determination in a very market in economic science.…

Q: - Now suppose that the Demand curve is actually slightly more inelastic, and the Supply curve is…

A: (Since you have posted multiple sub-parts, we will answer the first three for you. If you want 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: If the government is considering implementing a tax on lumber used in the production of new houses.…

A: A deadweight loss is considered to be a cost to the society which is being created by the…

Q: Suppose the government removes a tax on buyers ofa good and levies a tax of the same size on sellers…

A: Tax is always a subject to the consumer, it means if tax is levied on the consumer then it directly…

Q: The government of your country has recently decided to put a tax on calling cards. This decision by…

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

Q: Let Q=2P be supply and Q=20-2P be demand. With a tax of 2 the price received by the producer…

A: According to the given demand and supply should, initial market price was: Qs=Qd 2P=20-2P 4P=20 P=5…

Q: If the government eliminates a tax on a good with a perfectly elastic supply, who benefits most? O…

A: If the government eliminates a tax on a good with a perfectly elastic supply ,who benefits most.

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: Which of the following statements is true? O A. The equilibrium price after a specific tax will be…

A: Incidence of tax depends on price elasticity of demand and supply.

Q: 2. Suppose demand and supply are given by Qdz = 7-P, and Qsz = P - %3D --ice G. Show the existing…

A: Part c) In the figure below , we have supply and demand which intersects at price 10 which is…

Q: 2. Suppose demand and supply are given by Qdy = 7-P and Qsx =P- %3D a. Determine the equilibrium…

A: As you have given a question with multiple parts , I have solved the first three subparts for you.…

Q: Imagine that you work for the central bureaucracy and you need to raise revenue.  You want to use a…

A: Price elasticity measures the responsiveness in quantity demanded/supplied of a commodity to a…

Q: For a given normal demand curve, the amount of a tax paid by the producer will be larger Select one:…

A: If the demand is more elastic than the supply then the burden of tax will be more on the seller.

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A: Elasticity measures how responsive is quantity to changes in price level.

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

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A: Tax incidence refers to the split of a tax burden across stakeholders such as buyers and sellers,…

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: 2. Suppose demand and supply are given by Qd, =7-P, and Qs, =P- a. Determine the equilibrium price…

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

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: Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O.…

A: When a government imposed a tax on a product, then how much the burden of the tax falls on buyers…

Q: 43. A tax paid by buyers shifts the supply curve, while a tax paid by sellers shifts the demand…

A: At a marketplace, when tax is imposed on the market participants, it will lead to affect the market…

Q: e the concept of Price Elasticity of Demand to explain why the public policy recommendation of…

A: The elasticity of demand measures the responsiveness of quantity demanded changes as a result of…

Q: A tax is imposed on producers of a good. For a given supply curve, the more price elastic the demand…

A: When the tax is imposed on the producers of a good, then for a given supply curve the more price…

Q: Suppose the government wants to reduce the consumption of cigarettes. To do so, it is analyzing two…

A: The scenario with cigarette taxes indicated that, attributable to inelastic demand, taxes are…

Q: 5. Calculating tax incidence Suppose that the U.S. government decides to charge cola producers a…

A: Answer: Given, Quantity before tax= 25 million cases of cola Quantity after-tax = 18 million cases…

Q: The government intends to impose taxes on alcohol. Its demand has a fixed elasticity -1 and the…

A:

Q: When a tax is levied on a good, what happens to the market price and why? Select one: O a The market…

A: when the government intervenes the free market by imposing tax on the good, the tax increases the…

Q: 1. The monthly demand function is pp = 26,000,000 -qand the supply function %3D before taxation is…

A: Inverse Demand: Pd = 26000000 - 1/3q2  Inverse Supply: Ps = 1000000+3750q

Q: D D Question 30 Find the tax burden on sellers per unit of quantity. Answer: The tax burden on…

A: A sales tax paid by buyers shifts the demand curve, while a tax paid by sellers shifts the supply…

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A: Tax revenue is calculated by multiplying the per unit tax with the quantity supplied/ demanded at…

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A: In a market, when a tax is imposed on a specific good, a tax amount per unit can be considered as…

Q: 21) The elasticity of demand for potato chips is 0.6 and the elasticity of supply for these chips is…

A: Elasticity is the responsiveness of demand or supply due to a change in own price of the good.…

Q: Consider the supply and demand graph above showing a shift in demand from D1 to D2. Which of the…

A: In the given graph, it can be seen that demand curve shifts to the right from D1 to D2.

Q: If the government levies a tax on a good for which the demand is more price elastic tha the sppfe…

A: In a market, when government imposes tax on any commodity, the tax burden on the market participants…

Q: What happens to the total surplus in a market when the government imposes a tax? Select one: O a.…

A: Total Surplus after tax = Consumer Surplus + Producer Surplus + Tax Revenue by Government