why do comsumers pay the tax on goods if the elasticity of demand is less than the elasticty of supply?

Q: Assuming the demand and supply curve are elastic, discuss the incidence of a tax imposed on the…

A: The demand curve of a good shows the quantity of the good demanded in the market by the consumers of…

Q: Fill in the following table with the quantity sold, the price buyers pay, and the price sellers…

A: Quantity Price buyers pay Price sellers receive Before Tax 250 $ 25 $25   After…

Q: With the help of appropriate diagrams, explain how a tax can be used to reduce the consumption of a…

A: Tax are contribution to goverment which are levied on individual as well as or a firm which are…

Q: Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be…

A: Answer-

Q: The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will…

A: Elastic supply means when price increases by some percentage, quantity supply increases by more than…

Q: How can the government improve tax collections without imposing much tax to the consumer?

A: When a taxing body, typically a government, levies or imposes a financial responsibility on its…

Q: What if any are the effects of taxation on a normal profit

A: The profit is the excess revenue made by the firm after deducting the total cost of production from…

Q: If the government wants to use a Pigouvian tax to alleviate the problem of obesity contagion, what…

A: We are going to discuss ways to minimize negative externalities.

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 =…

Q: Consider the market for junk food. Illustrate and explain the effects on price, quantity and the…

A: The market for junk food is represented in the below steps.

Q: onomists in Champaign have been studying the local market for pizza. The market is described in the…

A: when the government subsidies the consumption by 2 $ subsidy, the consumption of pizza rises and the…

Q: The law of demand states the basic price/quantity relationship of consumption incentives. What does…

A: Meaning of Law of Demand: The term law of demand states that when there is an increase in the…

Q: Suppose the California legislature passed a sweeping law to lower the number of regulations for…

A:

Q: ould consumer or producer carry the burden of tax if good is inelastic? Show on a grap

A: Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: It is given that elasticity of demand= -0.8, and elasticity of supply=0.7 is inelastic in nature.…

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: the supply of a good is perfectly inelastic, then suppliers will bear the full burden of an excise…

A: Market refers to the place where the consumer can buy whatever they want to buy at the given prices…

Q: Suppose government impose a tax of 1 dollar per bottle on sellers of industrial detergent. Explain 3…

A: The tax is a compulsory payment or a levy which is imposed by the government on providing various…

Q: the demand for a product is inelastic but the supply is elastic, the ________ will bear the tax…

A: The burden of tax on consumers and producers is decided by the elasticity of demand and supply. The…

Q: Suppose the California legislature passed a sweeping law to DECREASING the parking requirements and…

A: 1.When the government decided to reduce the parking requirements for the housing along with setback…

Q: The reason which determines the elasticity of tax burden on buyers and sellers.

A: Elasticity determines who will bear the burden of taxes: buyers or sellers. When Demand is more…

Q: Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a…

A: A 10,000 percent tax on bullet will not likely to generate a lot of revenue.  The reason is as the…

Q: Why is tax necessary for the government? Substantiate your answer in 2 paragraphs

A: A country is controlled by it's government

Q: When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500…

A: Disclaimer :- since you have asked multipart questions we can solve only 3 subparts as per…

Q: smoking to cancer plans to raise the excise tax in cigarettes so the price rises by 10 percent. The…

A: Price elasticity of demand is in turn being defined as the % change in quantity which is being…

Q: aph shows the market for a vital-to-life drug on which the government has imposed a tax of $2 per…

A: Elasticity helps to determine how much tax is paid by buyers or suppliers. It shows the…

Q: The supply of book is perfectly elastic at a price of 200. The demand curve of consumer is given by…

A: # we are given the demand function as: Q = 30000000 - 125000P  # Supply function given as:  P = 200…

Q: When the price of demand is high and the price elasticity is low the burden of a tax falls primarily…

A: Elasticity of demand depicts how much consumer responds with the change in price.

Q: Would consumer or producer carry the burden of tax if good is elastic? Show on a graph

A: The tax burden is decided based on the elasticity of demand and supply. If elasticity of demand is…

Q: Which of the following statements is true? a) If the PED for a product is less than zero, the…

A: Price elasticity of demand (PED) refers to the responsiveness of change in quantity demand due to…

Q: 1 Francesca buys pencils and erasers at 10$ and 9$ per amount. Francesca has an income of 90$. There…

A: Tax refers to the money collected by the government from the firms and individuals for spending on…

Q: Does a tax on buyers affect the demand curve?

A: The demand curve shows the negative relationship between price of the goods and its quantity…

Q: How a Pigovian tax affects consumers? Please support your explanation based on a figure.

A: The Pigovian tax's aim is to reallocate the expense of the negative externality straight to the…

Q: Neither the supply of nor the demand for a good is perfectly elastic or perfectly inelastic.…

A: Placing a tax on a good, shifts the supply curve to the left. It leads to a decrease in demand and…

Q: Answer the following questions for the price-demand equation. p+0.002x = 40 (A) Express the demand x…

A: Price elasticity of demand is defined as the percentage change in the quantity demanded for a good…

Q: Exercise 4 The government has imposed a new tax on all airline travel. The market has two types of…

A: Intermediate Microeconomics is a core economic theory course that will improve a student's ability…

Q: The side of the market with the relatively higher elasticity will face more of the tax burden.…

A: The tax burden is inversely related to elasticity. The side of the market with the relatively higher…

Q: How may we use" Elasticity of Tax" to assess if there has been an increase/ decrease in the size of…

A: Answer: Tax elasticity refers to the response of revenues to change in income, given the tax…

Q: Complete the following table with the tax revenue collected and deadweight loss caused by each of…

A: Tax revenue is the revenue received by the government due to the tax imposed. Deadweight loss is due…

Q: If elasticity of demand is greater than elasticity of supply, more tax incidence will be on who? A.…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: For what kind of preferences will the consumer be just as well-off facing a quantity tax as an…

A: Consumer well-off facing a quantity tax in the case of the kinked demand curve for the complement…

Q: How much is the decrease in consumer's surplus as a result of Quota?

A: Consumer surplus is calculated by CS = 1/2 ( base) (hight)

Q: As price elasticity of demand increases, the burden of a tax gets _______; as price elasticity of…

A: Price elasticity of demand: It can be define as the ration of percentage change in quantity demanded…