Which of the following statements is true?O A. The equilibrium price after a specific tax will be the same whether the tax is collected from consumers or producers.O B. The equilibrium price after a specific tax will depend on whether the tax is collected from consumers or producers.O C. The tax incidence on consumers will be higher if the tax is collected from consumers.O D. The tax incidence on producers will be higher if the tax is collected from producers.tv30Car AlleText PagesGranberPrintMacBook AirDIDDF1080F8F9F6F7F4F5escF3F2F1$%&@#123* 00

After-tax the demand or supply curve shifts to the left based on the tax are levied on whom but the…

Answered: Which of the following statements is…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 5QR

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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?
Which of the following statements is true? O A. The equilibrium price after a specific tax will be the same whether the tax is collected from consumers or producers. O B. The equilibrium price after a specific tax will depend on whether the tax is collected from consumers or producers. OC. The tax incidence on consumers will be higher if the tax is collected from consumers. O D. The tax incidence on producers will be higher if the tax is collected from producers. MacBook Air
Which of the following would most likely result in an increase in the demand for iPhones, assuming iPhones are a normal good? O a. A decrease in household income. O b. The government announcing that Apple does not protect customer iPhone data in a secure and safe manner. O c. The government places an excise tax on the sale of each iPhone, but paid by Apple not customers. O d. A decrease in the price of lithium, a crucial component of iPhones. O e. An increase in the price of Android phones.
1. Suppose that the market demand for coffee is Pd = 15 - Qd and the market supply is Ps= Qs - 5. What is the equilibrium price and quantity for coffee? Suppose that the government imposes a tax of $1 per unit to reduce coffee consumption and raise government revenues. What will be the new equilibrium quantity? What price will the buyer pay? What price will the seller receive? A o F2 BE #3 ㅁㅁ F3 $ A t 4 OFFIC DEO DOD 000 F4 % 5 F5 MacBook Air 6 F6 & 7 L * 8
The market for skateboards currently has no taxes. The equilibrium quantity is 5,000/month, and the equilibrium price is $40. The governor is considering placing a $10/skateboard tax on skateboard producers, and expects to raise $50,o00/month in revenue. Is the governor correct? O Yes, because producer and consumer responses will cancel out. O No, because the quantity produced and consumed will fall below 5,000/month once the tax is imposed. O No, because it doesn't matter whether the consumer or producer is taxed. O Yes, because 5,000 x $1O = $50,000.
7. Problems and Applications Q7 Congress and the president decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.50 tax on each gallon of gasoline sold. Suppose they decided to impose the tax on producers. In the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on producers by shifting the demand or supply curve. Price of Gasoline (Dollars per gallon) 30 2.5 20 Supply Demand Quantity of Gasoline (Thousands of guilons) -O- Demand 18 Supply
Suppose the government removes a tax on buyers ofa good and levies a tax of the same size on sellers ofthe good. How does this change in tax policy affectthe price that buyers pay sellers for this good, theamount buyers are out of pocket (including any taxpayments they make), the amount sellers receive (netof any tax payments they make), and the quantity ofthe good sold?
What happens to the total surplus in a market when the government imposes a tax? of Select one: O a. Total surplus decreases. estion O b. Total surplus increases by the amount of the tax. O c. Total surplus increases but by less than the amount of the tax. O d. Total surplus is unaffected by the tax.
Time left C If the government wishes to discourage smoking by tax increases, the buyer pays a larger share of the tax if the: Select one: O a. tax is imposed on the buyer O b. demand is price inelastic O c. supply is price inelastic O d. tax is imposed on the seller O e. price is higher Next
Suppose the government removes a tax on buyers of a good and levies a tax ofthe same size on sellers of the good. How does this change in tax policy affectthe price that buyers pay sellers for this good, the amount buyers are out ofpocket including the tax, the amount sellers receive net of tax, and the quantityof the good sold?
Which of the following would cause a shift in the demand curve for notebooks. Select one: O a. A fall in the price of notebooks. O b. A rise in the cost of printing. Oc. A fall in the cost of printing. O d. Lecturers putting lecture notes online. O e. A rise in the price of notebooks.
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