Which of the following statements iscorrect? Choose an answer:O 1. Regardless of which side of the market the tax is levied on, the more inelastic side of the market bears thehigher tax burden.O 2. If the supply is more elastic than the demand, then the suppliers bear the greater tax burdenthan the buyers.3. The tax burden is incurred on the side of the market where the tax is levied.O 4. The tax burden is always borne half by the supplier and half by the customer.O 5. If the demand is more inelastic than the supply, then the providers bear the greatertax burden than the buyers.O00

The markets are operated by the working of the buyers, and sellers of goods, services, assets,…

Answered: Which of the following statements is…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 5QR

See similar textbooks

Similar questions

15 12 D2 100 101
QUESTION 8 Figure 14- 12 10 6 2 10 20 30 40 50 60 70 Refer to Figure. If the government imposed a tax of $6 per unit in this market then which of the following statements would be correct? O a. The burden of tax will fall equally on the buyers and sellers. O b. The burden of tax will fall more on the buyers. O C. The burden of tax will fall more on the sellers. O d. Neither buyer or seller will have to pay the tax. QUESTION 19 Figure 20 Trice 18 16 14 12 10 8 D 2 10 20 30 40 50 60 70 80 quantity Refer to Figure. If the government imposes a price ceiling of $6 on this market, then there will be O a. a shortage of 40 units. O b.no shortage. O C. a shortage of 30 units. o d. a shortage of 20 units.
Figure: Commodity Tax Price $2.25 1.75 1.50 0 100 200 325 400 D₂ D₁ Quantity If a $0.75 tax is imposed on sellers of candy bars, the new equilibrium is: O 325 candy bars at $2.25 each. 325 candy bars at $1.50 each. 325 candy bars at $1.75 each. 400 candy bars at $2.25 each.
4 l 51% a 12:02 O Worksheet (25%) Suppose that the governrnent irmposes a tax oni cigarettes. Use the diagram below to answer the questions D is the demand curve before tax S is the supply curve before tax and S is the supply curve after the tax. Price 18 12 10 10 12 Qua (a) For the market for cigarettes without the tax indicate: () Price paid by consumers (1i) Price paid by producers () Quantity of cigarettes sold (iv) Buyer's reservation price
Question 5: Combined state and federal taxes on gasoline average around 50 cents per gallon, and these taxes are statutorily levied on gasoline sellers. Because the demand for gasoline is relatively inelastic compared to the supply of gasoline: buyers likely do not bear much of the actual burden because it is statutorily levied on sellers who must submit the tax payments. sellers likely bear most of the actual burden of the tax through lower gasoline prices. O the net price received by sellers after they pay taxes likely falls by almost the full amount of the tax. O buyers likely bear most of the actual burden of the tax through higher gasoline prices.
Figure #2 price 10 D after as 10 20 40 50 70 Refer to Figure#2. Respectively, what are the tax burdens paid by consumers and sellers? O $1.00 per unit and $2.00 per unit O $3.00 per unit and $1.00 per unit O $1.00 per unit and $3.00 per unit- $3.00 per unit and $2.00 per unit O Tyne here to search
15 12 D2 D1 100 101 Consider the supply and demand graph above showing a shift in demand from D1 to D2. Which of the following statements are true? (Select all that apply.) a. Consumers will see a larger change in price than producers. O b. Supply is more elastic than demand. O c. A supply-side tax would have had the same effect on the market. O d. Demand is elastic. O e. The shift from D1 to D2 represents a tax. O f. The amount of the tax/subsidy is $3 O g. There is not enough information to determine the elasticity of demand. O h. Producers will see a larger change in price than consumers. O i. Supply is inelastic. Oj. The shift from D1 to D2 represents a subsidy.
Your state legislature is considering increasing the sales tax on two different commodities: prescription drugs and restaurant meals. You estimate owm-price elasticity of demand for prescription drugs Lo be -0.08 and uwn-price elasticity of dermard for reslaurant meals lo be -0.95. If the legislaturc's primary gnal in incrcasing taxcs is to raiscmoncy most efficiontly (i.c., minimizing the resulting deadweight loss), it should tax bullıdrugs and restaurant meals equally. drugs bccausc domand is morc pricc inclastic. reslaurant meals Lecause lhey are nol a rnecessily. only thosc prescription drugs that arc not lifc saving. restaurant meals because demand is more price elastic.
> D Question 4 Price (dollars per widget) a O 8 4 N 10 $6. S O between $8 and $6. more than or equal to $8. less than $6. 1 pts 20 30 40 50 60 Quantity (millions of widgets per year) In the figure above, if a tax of $2 per widget is imposed on sellers, then the after-tax amount per widget received by the seller will be
O O 198765432 O 10 Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of 40 units in the graph above. If the government decides to add a $2 per-unit tax on this good, the deadweight loss from the tax will be: 10 80 70 S1 O 60 SO Demand 0 10 20 30 40 50 60 70 80 90100
Figure 6-12 Supply Demand 14 10 25 50 QUANTITY Refer to Figure 6-12. Suppose a tax of $5 per unit is imposed on this market. Which of the following is correct? O a. Sellers will bear more of the burden of the tax than buyers will. O b. Buyers will bear more of the burden of the tax than sellers will. O c Buyers and sellers will share the burden of the tax equally. O d. There is no tax burden.
Imagine that the demand curve for beer is given by P=9-Q and supply for beer is given by P=1+Q. What is the deadweight loss associated with a tax of $3 per unit? 12 O 2.25 O None of the above. O 6.25

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Economics, 7th Edition (MindTap Cou…

Economics

ISBN:

9781285165875

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Macroeconomics (MindTap Course List)

Economics

ISBN:

9781285165912

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics, 7th Edition (MindTap Cou…

Economics

ISBN:

9781285165875

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Macroeconomics (MindTap Course List)

Economics

ISBN:

9781285165912

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Microeconomics (MindTap Course List)

Economics

ISBN:

9781305971493

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS