Give an example of a product that has inelastic demand and elastic supply in the market to price. If government imposes a tax on production how will the burden of tax be distributed? Explain with diagram.

Q: When a tax is placed on the sellers of cell phones, the size of the cell phone market a. and the…

A: Given:- Tax placed on cell phone seller To determine:- Size of cell phone market=?

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

A: When demand is more elastic than the supply than in this situation suppliers bear the more burden of…

Q: The more elastic the supply of a product, the more likely it is that the a. burden of a tax on the…

A: When the supply is more elastic and there is an increase in the taxes which will cause the supply…

Q: The government imposes a per-unit tax of 4 sheqles on banana and demand for banana is elastic.…

A: An excise tax is a tax on each unit of a commodity. Consumers and producers share the burden or…

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: 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: When a good is taxed, the burden of the tax fallsmainly on consumers ifa. the tax is levied on…

A: Tax: A compulsory payment to state revenue levied by the government on worker's income and firm's…

Q: hen demand is elastic Draw a diagram and explain how consumer burden is determined…

A: The tax burden is distributed between the buyer and seller based on the prevailing elasticities of…

Q: At the current market equilibrium, the price elasticity of supply for a certain good is much lower…

A: Given: Price elasticity of supply is lower than price elasticity of demand . Government imposes a…

Q: A tax is placed on beer and sellers have ended up bearing most of the burden of this tax. Why is…

A: When a tax is placed on the good, quantity exchanged in the market decreases. Buyers pay higher…

Q: Assume that the demand for coal is more elastic than the supply. A tax on coal will    a. increase…

A: A tax could be a mandatory fee or financial charge levied by any government on a personal or a…

Q: - The greater the elasticities of demand and supply the:

A: As per fundamental economic hypothesis, the supply of a goods increment when its value rises. Then…

Q: Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the…

A: The tax incidence analysis consists of deciding who is the economic entity that bears the expense of…

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: (Figure: Tax on Seller) In the graph shown, the original equilibrium price is $50. A $6 tax is…

A: The equilibrium price before imposition of tax = 50 if tax of $ 6 is placed on the sellers then the…

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

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Suppose demand for good X is less elastic than demand for good Y. Suppose the government wants to…

A: The correct option is  A. Good X  Since the demand for X is less elastic.

Q: Assume that the elasticity of demand for fanta is -0.8 while the elasticity of supply is 0.4. What…

A:

Q: When supply is perfectly elastic, who bears the burden of tax? Select one: a. producers b.…

A: The burden of the tax falls on that side of the market (consumer or producer) which is relatively…

Q: Suppose the demand for grape jelly is perfectlyelastic (because strawberry jelly is a…

A: Elasticity mentions the responsiveness of one economic variable like quantity demanded to a change…

Q: Demand function: 2QX=2200-PX Supply function : Qx = -300 +3 Px Sales tax per unit : 150 Calculate…

A: A .  Pre tax Total surplus  = 945,000 where  CS = 810,000 ; PS = 135,000   Post tax total surplus  =…

Q: Suppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in…

A: An excise tax is a per unit tax on commodity.

Q: The demand and the supply for a good are each neither perfectly elastic nor perfectly inelastic. If…

A: A tax is a financial charge being levied by any government upon an individual or an organization for…

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: 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: very urgent!!! the demand for mineral water is P=10 – (2/3) Q and supply function for mineral water…

A: As per the guidelines, we can only answer 1 question up to 3 sub-parts at one time, we’ll answer…

Q: Suppose that the supply of oil is elastic and demand for oil is inelastic. If the government taxes…

A: Buyers will bear most of the burden of tax.

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

A: Tax burden of buyers = Es / (Es - Ed), where Ed: Elasticity of demand Es: Elasticity of supply

Q: If buyers pay more of a tax than do the sellers اختر أحد الخيارات a. demand is more elastic than…

A: Tax is a compulsory payment that is imposed by the government either directly or indirectly on the…

Q: Government levied a tax on good A. The less elastic the demand is, the greater or the smaller the…

A: The demand for the good is said to be elastic if the quantity demanded of the commodity changes more…

Q: Suppose that the Australian government imposes a sales tax on a product and both buyers and sellers…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

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: 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: Find and graph the Post Tax Consumer Surplus, Producer Surplus Tax Revenue, and Deadwelght Loss…

A: When a tax is imposed, the price for the consumers rises and the price for the sellers falls. The…

Q: Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: Suppose a university has 5,000 parking spaces. Show by a supply and demand diagram which side of the…

A: The supply curve determines the quantity that the suppliers are willing to supply at a given price.…

Q: A sales tax is imposed on good A. The supply of good A is not perfectly elastic or perfectly…

A: Part a) The tax incidence depends on the relative price elasticity of supply and demand. When supply…

Q: Market A Market B P(dollars) P (dollars) Q (units) Q (units) 5,000 5,000 Consider two markets…

A: ANS Tax incidence will be larger if the change in quantity demanded due to the tax is greater. PED…

Q: Do you think profit could be maintained if the tax burden were simply passed on to the consumers in…

A: We conclude that the government shall remove or minimize thetaxes in the vehicles like the Ford…

Q: (a) In a competitive market, the incidence of an excise tax ("who really pays the tax") is on…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: (a) Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and…

A: Burden of tax of producers and consumers depend on the elasticity of supply and demand .  High…