The incidence of a unit tax depends on the elasticities of supply and demand.  With appropriate diagram, explain the tax incidence when supply is perfectly inelastic (assume that demand curve is elastic)

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: QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the…

A: Tax imposed on sellers would result in seller get less amount that what the buyer pays. The buyers…

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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: G)Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: Consumers surplus is the difference between te amount the consumer is willing to pay anf the amount…

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: Q97 Before the imposition of a tax, the equilibrium price and quantity are $15 and 100,…

A: Q97 Before the imposition of a tax, the equilibrium price and quantity are $15 and 100,…

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: If sellers bear more of the burden of taxation then O supply is more elastic than demand O…

A: Tax incidence refers to the distribution of tax burden between buyers and sellers. The burden of the…

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

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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: 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: Suppose that the same tax is imposed across two competitive markets - A and B. You know that across…

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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: Given the following information Qp = 240 – 5P Qs = P where Qp is the quantity demanded, Qs is the…

A: According to question given that demand and supply function, we have to deduce the new supply and…

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: 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: Given a demand curve of P = 70 - 1.5Q and a supply curve of P = 2 + 0.5Q, with a tax of 44, solve…

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Q: Title The supply and demand equations for a good are respectively. The government decides to impose…

A: Given: The supply and demand for an equation are: Qd = 500 - 9pQs = -100 + 6p Tax = t per unit of…

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: Question 2 Given the following information Qd = 240 – SP Qs = P Where Qd is the quantity demand, Qs…

A: Let Pb is the price for buyerand Ps is the price for sellerNow government imposed a per unit tax of…

Q: Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If…

A: The burden of a tax is generally shared by the buyers and sellers in a market.  In other words, the…

Q: Suppose the supply is perfectly inelastic, which means the price elasticity of supply is 0. A…

A: As supply is perfectly inelastic , the supply curve is vertical in nature. The imposition of tax…

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: 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: 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: suppose demand is given by q d(p)=1-p and supply q s(p)=p with prices in dollars.if buyers pay a 10…

A: Given information; Quantity demanded: qd(p)=1-p Quantity supplied: qs(p)=p Tax on buyer= 10 cent

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: Assuming that supply is somewhat elastic, the burden of a per unit tax is borne more by consumers…

A: The elasticity of supply and demand determines the amount of the  burden of tax bore by a consumer…

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 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: Please only answer question 3 The statutory marginal tax rate for income levels between $0 and…

A: Income = $200000Hourly wage of child care = $20  Hours of child care = 800 hours  Total child care…

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: Given the following information QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the…

A: