Economics

A tax imposed on a market with an inelastic demand and an elastic supply with cause:
A)sellers to pay the majority of the tax
B)buyers to pay the majority of the tax
C)the tax burden to be equally devided between buyers and sellers
D)the tax burden to be divided, but it cannot be determined how

  1. 👍 0
  2. 👎 0
  3. 👁 53
asked by G
  1. Take a shot, what do you think? Hint: draw a graph with an elastic supply and an inelastic demand. Then shift up the supply curve representing the tax. What happens to price and the amount of revenue received by suppliers? by purchasers?

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Mircoeconomics: Elasticity

    Please help! I have a mid-term test in a couple of minutes... -------------- If the demand for some good fluctuates, but supply is constant, then which of the following combinations would generally yield the greatest quantity

    asked by Anonymous on October 4, 2008
  2. Economics

    A tax imposed on a maket with an inelastic demand and an elastic supply will cause: a)sellers to pay the majority of the tax b)buyers to pay the majority of the tax c)the tax burden to be w

    asked by G on April 7, 2008
  3. Economics

    Supply is Demand is Scenario A elastic elastic Scenario B elastic inelastic Scenario C inelastic elastic Scenario D inelastic inelastic Which scenario describes the market for oil in the long run? A. A B. B C. C D. D

    asked by Will on November 29, 2011
  4. Economic

    The market for Good X can be depicted with the following demand and supply equations: Demand: P = 50 – 1/2Q Supply: P = 1/3Q Where P is price per unit and Q represents quantity in units. Policy makers plan on imposing a $1 per

    asked by Dina on April 11, 2010
  5. Macroeconomics

    to raise funds at providing more support for public schools,a state government has just imposed a unit excise tax equal to $4 for each monthly unit of telephone services sold by each telephone company operating in the state. The

    asked by Sue on May 24, 2010
  6. Macroeconmics

    to raise funds at providing more support for public schools,a state government has just imposed a unit excise tax equal to $4 for each monthly unit of telephone services sold by each telephone company operating in the state. The

    asked by Sue on May 24, 2010
  7. Calculus (demand)

    18) The demand equation is x + 1/6p - 10+0. Compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at p=50. a) 5; elastic b) 1/9; inelastic c) 7/6; elastic d) 6; elastic I choose answer

    asked by Steff on June 15, 2011
  8. calculus

    18) The demand equation is x + 1/6p - 10+0. Compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at p=50. a) 5; elastic b) 1/9; inelastic c) 7/6; elastic d) 6; elastic I choose answer

    asked by Ben on June 15, 2011
  9. economy

    consider a perfectly competitive market in which all firms have the same costs. choose the statement that is incorrect a)the market demand is elastic at the market price b)each firm takes the market price as given and produces its

    asked by bryan thomas on July 6, 2013
  10. Economics

    There are 10 identical consumers whose demand is D: p = 20 - 10q. There are 10 identical firms, each firm's marginal cost is MC(q)= 5 + 5q. The market is competitive. a) derive the market demand function b) derive the market

    asked by Andrea on February 4, 2013

More Similar Questions