The actual burden of a tax falls most heavily on the side of the market that is more elastic. O falls most heavily on the side of the market that is more inelastic. O falls most heavily on the side of the market that is closest to unitary elasticity. O is distributed independently of relative elasticities of supply and demand.

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: 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: The more elastic the supply of a product, the more likely it is that the a. burden of a tax on the…

A: When the supply is more elastic and there is an increase in the taxes which will cause the supply…

Q: Suppose an ad valorem tax is imposed in which the Consumer Burden of the tax is less than the…

A: The value which is based on the transaction or the property is known as ad voleram tax. The term AD…

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: If a 10 cent tax is imposed on a supply curve with the function Qs = P - 2, the function…

A: supply is defined as the quantity of goods that the producers decide to sell in the market at any…

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: Suppose the demand for football tickets is QD=360-10P and the market supply is QS=20P. a) What…

A: Government imposes a $4 excise tax per ticket on the sellers of tickets, thus sellers receive $4…

Q: Suppose that a per-unit tax of 25 centavos per pack is placed on the sale of cigarettes by the…

A: 1. Burden of tax at D1 (Elastic demand): The price and quantity before tax is $1.30 and 5 units…

Q: Solve the attachment

A: The incidence of tax or tax burden refers to when the tax payment is shared by both a seller and a…

Q: Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 +…

A: Demand:  P = 24 - 1/2Q Q = 4 + 2P P= Q/2-2 Equilibrium: Q=22 units, P= IDR13 The government provides…

Q: - The greater the elasticities of demand and supply the:

A: As per fundamental economic hypothesis, the supply of a goods increment when its value rises. Then…

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: 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: how inelastic supply effect on tax

A: Taxes are defined as the amount of compulsory payment made to the government by the citizens of the…

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: Given the following information Qo= 240 - 5P Os = P where Qo is the quantity demanded, Qs is the…

A: After the imposition of tax price paid by consumer increases and price received by producer…

Q: Assume that in a market where the supply and demand curves are equally elastic, initially the…

A: Answer: Correct option: (A) Consumers pay $26/unit and producers receive $14/unit. Explanation:…

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: Economists disagree on whether labor taxes cause small or large deadweight losses. This disagreement…

A: The tax is a unilateral payment made by the people towards the government for various purposes such…

Q: The inverse demand function of chicken wings is p=50- 4g. The supply function of chicken wings is…

A: Given Demand function p = 50 - 4q -------(1) Supply function q = p ---------(2) At market…

Q: The excess burden is an increasing function of a tax. True, false or uncertain: the excess burden of…

A: As the rate of tax increases, its burden on the one bearing it rises and thus it can be rightly said…

Q: When demand is less elastic than supply, demanders pay a larger share of the tax and sellers pay a…

A: Elasticity is an important concept used by the government of the country to impose taxes on goods…

Q: The incidence of a unit tax depends on the elasticities of supply and demand.  With appropriate…

A: The markets for goods, and services operate on the basis of the demand forces, where the demand…

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 burden of a tax on sugary drinks is borne mostly by consumers, it must be the case that: a)…

A: The demand curve of a good shows the quantity demanded of a good at various possible price levels…

Q: The short-run market demand and supply curves for good X are as follows: QD = 20 - 4P QS = 7 +…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: uppose demand is represented by P = 100 - 2Q, and supply is represented by P = 5 + 3Q. If the…

A: Given  Demand equation: P=100-2Q          .... (1) Supply equation: P=5+3Q                 .... (2)…

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: Who gets most of the burden of the tax when demand condition is D1 and what is the tax burden? *…

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

Q: Identify the effect of increase in tax rates on either demand or supply curve and the equilibruim…

A: Taxes are the form of government revenue which are collected through the goods and services…

Q: What is the relation between elasticity and tax incidence?   Question 8 options:   Only the…

A: * SOLUTION :-    (8)   From above information the answer is provided as

Q: Tax elasticity and tax buoyancy are the same in that they both envisage the concept of the change in…

A: In an economy, tax elasticity and tax buoyancy are two different concepts that are used to explain…

Q: What is the marginal tax rate on a lump-sum tax?How is this related to the efficiency of the tax?

A: A lump-sum tax refers to a tax which is based on a fixed amount. It involves paying a fixed amount…

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: 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: The government of a State has been experiencing an increase in number of obesity cases. Research…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: The government of a State has been experiencing an increase in number of obesity cases. Research…

A: The point where demand is equal to its supply is the equilibrium point, at this point the price of…

Q: Market A Market B P(dollars) P (dollars) Q (units) Q (units) 5,000 5,000 Consider two markets…

A: ANS Tax incidence will be larger if the change in quantity demanded due to the tax is greater. PED…

Q: A proportional tax is a tax for which people with lower incomes   Group of answer choices A. pay a…

A: Answer: Correct option: (A) Explanation: A proportional tax is called a flat tax because here the…

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…