44. Refer to Figure 6-8. The effective price that buyers pay after the tax is imposed isSelect one:a. a. $8.b. b. $6.c. c. $5.d. d. $3.FeedbackcorrectThe correct answer is: a. $8.
Question45CorrectMark 1.0 out of 1.0Flag questionQuestion text45. Refer to Figure 6-8. The tax size isSelect one:
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b. b. $6.c. c. $5.d. d. $3.FeedbackcorrectThe correct answer is: d. $3.Question46CorrectMark 1.0 out of 1.0Flag questionQuestion text46. Refer to Figure 6-8. The burden of the tax on buyers isSelect one:
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d. d. $3.00 per unit.FeedbackcorrectThe correct answer is: c. $2.00 per unit.Question47CorrectMark 1.0 out of 1.0Flag questionQuestion text47. Refer to Figure 6-8. The burden of the tax on sellers isSelect one:
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48. Refer to Figure 6-12. In which market will the majority of the tax burden fall on the buyer?Select one:a. a. market (a)b. b. market (b)c. c. market (c)d. d. All of the above are correct.FeedbackcorrectThe correct answer is: b. market (b)
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Flag questionQuestion text49. Refer to Figure 6-12. In which market will the majority of the tax burden fall on the seller?Select one:
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Question50CorrectMark 1.0 out of 1.0Flag questionQuestion text50. Suppose the demand curve for a good is very flat and the supply curve for the good is verysteep. If the government taxes this good,Select one:
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Price controls are usually enacted
When policymakers believe that the price of a good or service is unfair to buyers or sellers
A legal maximum price at which a good can be sold is a price
a binding price ceiling is imposed
Refer to Figure 6-2. If the government imposes a price ceiling $8 in this market, the result would be a
Refer to Figure 6-2. In which of the following cases would sellers have to develop a rationing mechanism?
A price ceiling is set at $8
Over time, housing shortages caused by rent control
Increase, because the demand for, and supply of, housing are more elastic in the long run
Under rent control, tenants can expect
Lower rent and lower equality housing
Which of the following is not a result of government-imposed rent control?
At a minimum wage that exceeds the equilibrium wage,
The quantity supplied of labor will exceed the quantity demanded
The minimum wage, if it is binding, lowers the incomes of
Only those workers who cannot find jobs
Opponents of the minimum wage point out that the minimum wage
All of the above are correct
When government imposes a price ceiling or a price floor in a market,
Prices no longer serves as a rationing device
A tax on buyers of coffee will
Increase the effective price of coffee paid by buyers, decrease the price of coffee received by sellers, and decrease the equilibrium quantity of coffee
When a tax is imposed on tea and buyers of tea are required to send in the tax payments to the government,
Buyers of tea and sellers of tea both are made worse off
A tax imposed on the sellers of a good will
Raise the price paid by buyers and lower the equilibrium quantity
Refer to Figure 6-12. In which market will the majority of the tax burden fall on the seller?
Refer to Figure 6-14. The effective price that buyers will pay after the tax is imposed is
Refer to Figure 6-14. The effective price that sellers receive after the tax is imposed is
Refer to Figure 6-14. The amount of tax per unit is
Buyers of a good bear the larger share of the tax burden when a tax is placed on a product for which
The supply is more elastic than the demand
Which of the following is the most correct statement about tax burdens?
A tax burden falls most heavily on the side of the market that is less elastic
The burden of a luxury tax falls
More on the poor than the middle class
Which of the following statements is true?
Who actually pays a tax depends on the price elasticities of supply and demand
The demand for salt is inelastic and the supply of salt is elastic. The demand for caviar is elastic and the supply of caviar is inelastic. Suppose that a tax of $1 per pound is levied on the sellers of slat and a tax of $1 per pound is levied on the buyers of caviar. We would expect that most of the burden of these taxes will fall on
Buyers of salt and the sellers of caviar
If a price ceiling of $2 per gallon is imposed on gasoline, and the market equilibrium price is $1.50, the price ceiling is a binding constraint on the market.
If a price ceiling is below equilibrium price, the quantity demanded will exceed the quantity supplied.
Binding priced ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.
Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower
A binding minimum wage is a competitive labor market creates unemployment.
Economists use the term tax incidence to refer to who is legally responsible for paying the tax.
A government-imposed tax on a market shrinks the size of the market.
A tax on golf clubs will cause buyers of golf clubs to pay a higher price, and the equilibrium quantity will decrease.
If a tax is imposed on the buyers of a product, the tax burden will fall entirely on the buyers.
The incidence of a tax depends on whether the tax is levied on buyers or sellers.
Lawmakers can decide whether the buyers or the sellers must send a tax to the government, but they cannot legislate the true burden of a tax.
In general, a tax burden falls more heavily on the side of the market that is more inelastic.
Use the graph shown. What was the equilibrium price and quantity in the market before the tax?
Equilibrium price is $8 and equilibrium is 8000 units
Use the graph. What is the amount of the tax?
Use the graph. How much of the tax will the buyers pay?
Use the graph. How much of the tax will the sellers pay?
Use the graph. How much will the buyer pay for the product after the tax is imposed?
Use the graph. How much will the seller receive after the tax is imposed?
As a result of the tax, what has happened to the level of market activity?
Instead of 8000 units being bought and sold, only 6000 units will be bought and sold