Asked by Matthew Bahramian on Jul 16, 2024
Verified
(Figure: Tax Incidence) Use Figure: Tax Incidence.All other things unchanged,when a good or service is characterized by a relatively elastic supply,as shown in panel _____,a greater share of the burden of an excise tax is borne by _____.
A) A;buyers
B) B;sellers
C) B;buyers
D) A;sellers
Tax Incidence
The study of who bears the final burden of a tax, including how it is distributed between producers and consumers.
Elastic Supply
A situation where the quantity supplied changes significantly due to changes in the price.
Excise Tax
A specific tax levied on certain goods, services, or activities, often with the aim of reducing their consumption or raising government revenue.
- Understand the concept of tax incidence and how the burden of a tax is divided between buyers and sellers.
- Analyze the factors that influence the incidence of taxation between buyers and sellers.
Verified Answer
Learning Objectives
- Understand the concept of tax incidence and how the burden of a tax is divided between buyers and sellers.
- Analyze the factors that influence the incidence of taxation between buyers and sellers.
Related questions
Although Employers and Wage Earners Each Pay 50% of the ...
(Figure: the Market for SUVs)Use Figure: the Market for SUVs ...
If the Government Imposes a $500 Excise Tax on SUVs ...
(Figure: the Market for SUVs)Use Figure: the Market for SUVs ...
In General,the Incidence of an Excise Tax Is Shared Between ...