A9 The consumers' burden associated with an excise tax will be largest when demand isOA. vertical.B. unit elastic.C. horizontal.OD. perfectly elastic. The price of apples at a local market rises from $2.95 to $3.05 per kilo, and as a result the quantity of oranges that households purchase increases from 3,910 to 4,020kilos per week. The cross-price elasticity isOA -0.83.OB. 0.83.OC. 1.83.OD. -1.83.OE. 1.98.JUA DVD store decreases the price of its DVDs from $20 to $10. Correspondingly, sales increase from 1,800 to 2,000 per month.The total revenue

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

Answered: The consumers' burden associated with…

The consumers' burden associated with an excise tax will be largest when demand is OA. vertical. B. unit elastic. C. horizontal. OD. perfectly elastic.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 6CQQ

See similar textbooks

Related questions

Q: Compared with autarky (where each economy consumes only from what they produce themselves), the…

A: Autarky is the situation in closed economy while free trade is done in open economies.

Q: Explain why changes in consumption are unpredictable if consumers obey the permanent-income…

A: The permanent income hypothesis is an economics model that attempts to explain how consumption…

Q: 6. One of the hardest issues to understand is why manipulating prices as means of controlling short…

A: Answer - Price Ceiling :- It the ceiling which has been imposed by the government or any other…

Q: Explain clearly what a Carbon Tax is. Then explain clearly what an Emissions Trading scheme is.

A: Carbon Tax A carbon tax is an environmental tax imposed by the government to ensure that a company…

Q: Part 3 : Answer the following questions below. If graphs are being asked, provide the correct graphs…

A: The tragedy of the commons is an economic situation in which everyone has an incentive to consume a…

Q: rue or false? Resource suppliers tend to be more willing and able to supply the resource as its…

A: Resources are the factor of production which uses as input in the production process.

Q: Explain how the economic concept known as "supply of law and demand" can be interpreted as a…

A: Answer -

Q: A man bought an eqpt costing P500k payable in 20 semi annual payments with i = 12% , determine each…

A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…

Q: Bluth’s preferences for paper and houses can be expressed as Ub(p, h) = 2pb + hb, while Scott’s…

A: Given information Bluth’s utility function Ub=2pb + hb Scott’s utility function Us= ps + 2bs…

Q: following factors would be expected to affect the $A in the long-run? A cut of interest rates by the…

A: Answer - Long run :- In long run where all variables or factors are free to move and do not have…

Q: Is the following statement true or false? Given is the graph below of the oil market. Without the…

A: Here, the given graph shows the before tax and after tax outcome of the market.

Q: Suppose 10 units of a good are sold when the price is $2 per unit, and 14 units are sold at a price…

A: Price elasticity of demand measures how much the percentage changes in quantity demand occur when…

Q: 3. Suppose Thai inflation rate is too high and the Bank of Thailand (BOT) decides to reduce…

A: Monetary policy is a bunch of devices that a country's national bank has accessible to advance…

Q: Looking at the figure below, you are asked to (1) summarize your observation; (2) comment…

A: Nominal effective exchange rate: It refers to the rate which is not adjusted or unadjusted weight.…

Q: Labor Demand Data Labor Supply Data Total Product Product Price Employment Wage Rate 0 $ 2.20 0 15…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: a) Suppose that the bank has the following balance sheet. Answer the following questions: Assets…

A: Reserve requirement refers to the ratio or fraction of the deposits that banks need to keep in their…

Q: 2.Please explain what is a cluster of firms and what are the main economic advantages for those…

A: Answer to the question is as follows;

Q: (a) If economy A grows annually at a rate of 1% and economy B grows annually at a rate of 2%.…

A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a…

Q: 5. 'Suppose the taxi fare for the first two kilometres increases from $18 to $30, holding other…

A: A simple intuition of the Law of Demand does not work in such a scenario.

Q: Use the figure below to answer this question. O Interest rate (percent per year) 6 MD3 MD2 MD₁ Real…

A: When analyzing the money demand curve, it can be said that the different purposes of money demand…

Q: 5. In a floating exchange rate regime between Japan and the U.S, what happens to the dollar in the…

A: Floating exchange rates imply that monetary standards change in relative worth constantly. For…

Q: Can we print as much money to increase consumer spending and allow the aggregate to shift to the…

A: In an economy, aggregate demand can be increased with the help of monetary policy as well as fiscal…

Q: Economics Bo Jackson is the only player to make both the Pro Bowl and the MLB All-Star game. Leading…

A: Bo Jackson who is called an All-star in both football and baseball was the professional athlete in…

Q: The sticky-wage theory suggests an unexpectedly high price level lowers _____ causing firms to hire…

A: Introduction In sticky wage theory, nominal wages are sticky in the short run. When there are…

Q: Noah walks past the same pharmacy every day. He realizes the pharmacy always changes its prices on…

A: Demand - it refers to the quantity of a good that a consumer is able and willing to purchase during…

Q: Explain the relationship between output and investment implied by the accelerator theory

A: Acceleration principle was given by the famous economist J.B. Clark.

Q: Which of the following economic conditions is most difficult to identify: recovery expansion…

A: Economic condition: It refers to the financial circumstances that allude to the condition of an…

Q: b. Supposed that your friend is an owner of a lake that grows and harvests Bangus (Milkfish). A…

A: The tragedy of commons: It refers to a situation under which more people are indulged due to which…

Q: Assuming a fixed exchange rate policy, discuss the effectiveness of contractionary fiscal policy…

A: The fixed exchange rate system is when a currency is pegged with another or standard currency, there…

Q: Suppose consumer consume two goods. Can both goods be inferior? Can one of the goods be inferior?…

Q: Is the following statement true or false? Given is the graph below of the oil market. Without the…

A: Tax: It refers to the income of the government. The more the taxes in an economy the more will be…

Q: A. Explain the concepts of the 'Lorenz curve' and 'Gini coefficient'. In answering this question,…

Q: At time t=0, R$= 10%, R€= 10%, and E$/€=Ee $/€ = 1. Assume that due to a sudden change in…

Q: Ricardian Model. Consider two countries: A and B. Labour is the only factor of production for goods…

A: Introduction We have two countries: A and B. Labor is the only factor of production for goods X and…

Q: With regard to international borrowing, what are main differences between official channels and…

A: When the government, household, or any corporation of one country takes a loan or debt from the…

Q: f the current unemployment rate is 8% and the natural rate of unemployment is 6%, what do we know…

A: The natural rate of unemployment is the lowest level of unemployment that an economy can sustain…

Q: What is monopolistic competition?

A: The process through which buyers and sellers agree on the price and quantity of goods to be…

Q: Lilly deposits $350 every month into an account that earns 8% annual interest where interest is…

A: To calculate future value at compounded semiannually, we need to use the formula : FV=PV(1+i)n…

Q: s Demand El Su

A: The above graph can be made graphically as follows:

Q: An economy is a fare class on an airplane for pets O an agency where bankers discover new ways to…

A: This is MCQ question of economy

Q: In 2004–2006, for the first time Boeing produced fewer planes than Airbus. If Boeing finds itself…

A: The level of a business's profitability is one of the metrics that may be used to determine how…

Q: Question 1 You are the human resource manager at a large organization. Each worker in your…

A: A labour market is a gathering place for workers and employers to interact. Employers compete to…

Q: Will's expenditures on food for three consecutive years, along with other values, are presented in…

A: Here, the given table shows total expenditure made on 2009, 2010, and 2011at different price level.

Q: .Idea generation is meaning the systematic search for new product ideas Agree Disagree O Developing…

A: 1. This given statement is Right (agree) Ideal generation refers to the systematic search for new…

Q: ng graph shows the monthly demand and supply curves in the market for teapots. the the graph input…

A: A market is said to be in a condition of equilibrium when supply and demand are in a condition of…

Q: Describe the optimal level of state involvement in the economy of developing countries. What are the…

A: The government's role in the economy has an influence on technological performance and long-term…

Q: Investor Matt has $643,000 to invest in bonds. Bond A yields an average of 6% and the bond B yields…

A: In the mention question we have to calculate he maximum return within one year.

Q: Suppose a firm experiences decreasing returns to scale. This is shown graphically by www OA. a…

A: The decreasing returns to scale occurs when the additional use of inputs cause the rise in the…

Q: Which option is the best answer? An example of a consumption function is C - 50+ 0.85Y. When Y is…

A: "A consumption function indicates a relationship between consumption and disposable income. The…

Q: PLEASE DO THIS GRAPH DIGITALLY. THANK YOU.

A: The curve that depicts various quantities if goods and services being demanded at various price…

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

The consumers' burden associated with an excise tax will be largest when demand is
OA. vertical.
B. unit elastic.
C. horizontal.
OD. perfectly elastic.

The price of apples at a local market rises from $2.95 to $3.05 per kilo, and as a result the quantity of oranges that households purchase increases from 3,910 to 4,020
kilos per week. The cross-price elasticity is
OA -0.83.
OB. 0.83.
OC. 1.83.
OD. -1.83.
OE. 1.98.
JU
A DVD store decreases the price of its DVDs from $20 to $10. Correspondingly, sales increase from 1,800 to 2,000 per month.
The total revenue

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
Suppose households supply 500 billion hours of labor per year and have a tax elasticity of supply of 0.16. If the tax rate is increased by 19.6 percent, by how many hours will the supply of labor decline? a) 28.67 billion b) 1.568 trillion c) 2.465 trillion d) 3.422 trillion e) 9.183 trillion
Government levied a tax on good A. The less elastic the demand is, the greater or the smaller the tax burden consumers bear? Also, is the after-tax equilibrium quantity the greater or smaller? Consumers’ tax burden: After-tax equilibrium quantity:
very urgent!!! the demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.