Time left U:36:11 When the price elasticity of demand is low and the price elasticity of supply is high, the burden of a tax falls primarily on Select one: O a. both buyers and sellers of the product equally. O b. the tax payers. O c. buyers of the product O d. sellers of the product

Q: 36 Supply I Quantity (Bottles) 48 32 Demand Price (Dollars per bottle) Şupply Price (Dollars per…

A: Given, Quantity- 48 Demand price- 24 Supply price- 16 Tax wedge- 8 (Price are /bottle)

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A: Elasticity is the responsiveness of change in quantity due to change in price.

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A: a)

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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 =…

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A: Answer: option c (buyers of the product) Explanation: The burden of the tax falls more on buyers if…

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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 following graph depicts the impact in a market after the government imposes an excise tax. $16…

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