Q)Economics If the tax elasticity of supply is 0.16, by how much will the quantity supplied increase when the marginal tax rate decreases from 40 to 36 percent?

Q: Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P.  What is…

A: At equilibrium, Demand and supply curve intersect each other. Hence, at equilibrium, Qd=Qs

Q: The incidence of indirect taxes on suppliers is greatest when (a) supply is elastic and demand is…

A: The incidence of taxes examines the distribution of money burden of taxes on the economy.  In case…

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: When a tax is placed on the sellers of cell phones, the size of the cell phone market a. and the…

A: Given:- Tax placed on cell phone seller To determine:- Size of cell phone market=?

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: The tax-inclusive price of a carton of cigarettes in Canada is $100 per carton. Per capita…

A: Per capita tax revenue is the amount of tax amount collected by government on per person , this is…

Q: xyz has immense demand function p=30-Q and marginal cost of MC=Q . suppose the government introduces…

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

Q: Suppose the market demand for milk is  Qd = 40 – 4P Where Qd is millions of gallons demanded and P…

A:

Q: Demand = 20-P; Supply = P/3; both linear. What is deadweight loss associated with a $4/unit output…

A:

Q: Assume that the demand for coal is more elastic than the supply. A tax on coal will    a. increase…

A: A tax could be a mandatory fee or financial charge levied by any government on a personal or a…

Q: A tax on demand shifts and the burden of the tax falls on the demand curve only; on demanders only.…

A: A tax on demand implies a tax on goods which leads to a fall in the demand and supply so it shifts…

Q: If GDPMP of a country is 50 billion and product taxes are 2 billion while subsidies given are worth…

A: The gross domestic product (GDP) is the money or market value of all the finished goods and services…

Q: By using only one graph, show and explain who bears the burden and excess burden of an excise…

A: As shown in diagram before tax the equilibrium price is determined by the intersection of supply and…

Q: Do you think profit could be maintained if the tax burden were simply passed on to the consumers in…

A: The division of a tax burden across stakeholders, such as buyers and sellers, and producers and…

Q: 1. The monthly demand function is p, =31,000,000 --q° and the supply function 3 before taxation is…

A: Inverse Demand: Pd = 31000000 - 1/3q2  Inverse Supply: Ps = 1500000+4500q

Q: If the goverment wants to raise tax revenue and shift most of the tax burden to the consumers, it…

A: Tax incidence measures the burden of tax shares between consumer and seller.  It depends on the…

Q: Assume that the price of soft drinks is $5 and the government decides instead to impose a $1 tax per…

A: Here, the price of soft drinks is given as $5 and the government imposes a $1 tax on producers. It…

Q: Question 6 The incidence of indirect taxes on suppliers is greatest when: A) supply…

A: "Indirect tax is a tax imposed on products and services before they reach the buyers, who pays the…

Q: supply is less elastic than demand when a market is in equilibrium, then taxing consumers for every…

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

Q: Suppose demand for good X is less elastic than demand for good Y. Suppose the government wants to…

A: The correct option is  A. Good X  Since the demand for X is less elastic.

Q: Why type of good are the best choice for levying or applying an excise tax? A. Goods that are…

A: Excise Tax: The excise tax is a type of indirect tax that is imposed on the sale of the commodity.…

Q: When supply is perfectly elastic, who bears the burden of tax? Select one: a. producers b.…

A: The burden of the tax falls on that side of the market (consumer or producer) which is relatively…

Q: Peanut butter has an upward-sloping supply curve and a downward-sloping demand curve. if a 10 cent…

A: Tax is the compulsory payment that imposed by the government on individual, and business. Tax is the…

Q: Suppose the supply curve for cars is more elastic than the demand curve for cars.  If the government…

A: Tax incidence can be shifted only through sale and purchase transaction.  Share of tax borne by the…

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: A $3 tax on fruits and vegetables would be more effective at increasing tax revenue if the supply of…

A: Taxes are compulsory contributions imposed on individuals or corporations by a government entity,…

Q: If the demand for automobiles is price elastic and an excise tax is levied on sellers of automobiles…

A: The elasticity of demand is the percentage change in quantity demanded due to a unit percentage…

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

A: Price elasticity of demand measures how the change in a product’s price affects its associated…

Q: Suppose that the supply of oil is elastic and demand for oil is inelastic. If the government taxes…

A: Buyers will bear most of the burden of tax.

Q: Question: A tax is imposed on a certain good, and it produces revenue of $5,000 for the government.…

A: Given:  Total Revenue = $5000 Reduction in Consumer Surplus = $3000 Reduction in producer surplus =…

Q: Which of the following, if true, would most effectively undermine the argument that raising…

A: A crucial structure block of monetary hypothesis is the way that expanding (or diminishing) the cost…

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: The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa)…

A: At equilibrium, quantity demanded = quantity supplied. Elasticity of demand is % change in quantity…

Q: Suppose an economist estimates the price elasticity of demand for sugary drinks is -4.2, while its…

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

Q: Suppose that a tax is placed on a particular good. If the consumers pay a higher share of the tax,…

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

Q: If a tax is levied on the buyers of a product, the tax burden will fall entirely on the buyers. A.)…

A: Tax is revenue for the government.

Q: When the absolute value of price elasticity of demand is greater than the absolute value of price of…

A: The customers will bear a larger fraction of the tax imposed if the demand (dd) is going to remain…

Q: Question 16 All taxes create some deadweight loss except those on goods that can be resold for a…

A: Answer: Option E (with a perfectly inelastic demand or supply) Explanation: If either the demand or…

Q: The market for pizza is characterized by a downward sloping demand curve and an upward sloping…

A: An excise tax is a tax on each unit of a commodity. When it is collected from sellers, the tax…

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: Which of the following statements about dead weight loss is false: A)If supply is price elastic,…

A: Answer - Need to find- Which of the following statements about deadweight loss is false Evaluating…

Q: If the government imposes a $5 excise tax on the production of wine, then from the perspective of…

A: Consider a liner supply function P=a+bQ         .... (1)

Q: Do you think profit could be maintained if the tax burden were simply passed on to the consumers in…

A: We conclude that the government shall remove or minimize thetaxes in the vehicles like the Ford…

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…

Q: Suppose there are two medical goods. Heart surgery and plastic (cosmetic) surgery. The market price…

A: Given: The market price for the heart surgery is = $100k The market price for plastic surgery is =…